By Darryl John Esguerra | Philippine News Agency
The Marcos administration is counting on increased infrastructure spending to help lift economic growth in the second half of 2026 after the government trimmed its Gross Domestic Product (GDP) growth forecast amid global and domestic headwinds.
Palace Press Officer Claire Castro said infrastructure disbursements slowed as the government exercised caution in releasing funds while reviewing projects linked to allegedly anomalous flood control works.
“Hindi agad gumastos ang gobyerno, pinag-aralang mabuti at hindi basta-basta inilabas ang pondo,” Castro said in a Palace briefing Thursday.
She noted that the slowdown in public spending, particularly on infrastructure, contributed to softer economic growth despite efforts earlier this year to accelerate project implementation.
Asked why increased infrastructure spending and government releases for contingencies, including the Middle East crisis response, had yet to significantly boost growth in the first half, Castro cited continuing external pressures.
“Hindi pa rin po kasi natatapos ang krisis sa Middle East. Kahit ano pong gawin natin sa ngayon, nakakaapekto pa rin po siya,” she said.
Castro also pointed to domestic political noise as another factor affecting economic performance.
Despite these challenges, the Palace expressed optimism that stronger infrastructure spending under Budget Secretary Kim de Leon would help stimulate economic activity in the coming months.
She added that economic managers expect improvements in growth during the second half as infrastructure projects gain momentum and government spending accelerates.
The Development Budget Coordination Committee recently lowered its 2026 GDP growth forecast to 3.5%–4.5% from the earlier 5%–6% target.
