By Ruth Abbey Gita-Carlos | Philippine News Agency
Malacañang on Tuesday expressed confidence that the Philippine economy will recover in the fourth quarter of 2025, citing the anticipated increase in private holiday spending and exports, as well as the prudent use of the P1.307-trillion programmed budget.
Presidential Communications Office (PCO) Undersecretary and Palace Press Officer Claire Castro acknowledged that the slowdown in economic growth in the third quarter of 2025 could be attributed to the adverse impact of recent calamities and the controversies surrounding the country’s flood control projects.
“Pero ayon sa forecast, gaganda naman po at mag-i-improve ang ating economic growth nitong last quarter of the year,” Usec. Castro said in a Palace press briefing.
The country’s economic growth dropped to 4% in the third quarter of 2025, slower than the 5.5% recorded in the second quarter and the 5.2% growth posted in the same period last year, data from the Philippine Statistics Authority (PSA) showed.
This also marked the lowest growth since the 3.8% contraction in the first quarter of 2021 during the COVID-19 pandemic.
Castro said President Ferdinand R. Marcos Jr. has ordered the proper utilization of programmed appropriations to help spur economic growth.
She added that the multi-trillion-peso programmed appropriations will be used to strengthen the infrastructure, health, and education sectors, as well as to fund assistance for disaster-stricken communities.
“Ang utos ng Pangulo ay gamitin sa tama ‘yung P1.307 trillion na programmed budget para po makita ng business sector na ang gobyerno ay gumagastos sa tama at ito po ay makapagpapalago ng ekonomiya,” Castro said.
Most of the released programmed appropriations will be allocated for social services for the rest of 2025, driving a “multiplier effect” on the economy.
