Balisacan: PHL underlying growth track remains at 6%

THE growth track for the Philippines remains at 6% over the medium term, the government’s chief economic planner said, noting steady investment, productivity and technology gains, and a healthy labor market.

“Our potential growth remains at least 6% annually,” Secretary Arsenio M. Balisacan, who heads the Department of Economy, Planning, and Development, said in a statement on Thursday.

“Our medium-term targets reflect this capacity. While short-term fluctuations and external headwinds may affect immediate outcomes, the economy’s overall trajectory remains firm,” he added.

Growth is expected to fall short of government targets following the slowdown in public spending in the wake of the infrastructure corruption scandal, as well as a series of typhoons and earthquakes late in the year.

Economic managers have conceded that the economy is unlikely to hit the official 5.5-6.5% target band this year.

However, they said the fallout from the corruption scandal is considered temporary, with a recovery seen in 2026, where 6% growth is deemed within reach.

Mr. Balisacan said the economy remains “strong” despite recent governance challenges and continuing global uncertainties.

“Our sound macroeconomic fundamentals — sustained growth, easing inflation, a healthy labor market, a manageable fiscal deficit and public debt, a broadly stable currency and external position, and a robust banking system — continue to anchor our resilience,” he said.

Mr. Balisacan said that priorities of the economic team, even after a cabinet reshuffle, remain aligned with the Philippine Development Plan 2023‑2028. He said reforms are being undertaken to keep the economy on track.

The government is aiming for 6-7% growth in the 2026-2028 period.

“The government will continue to deploy fiscal, monetary, financial, technological, and social-protection policies, together with key legislative measures, to keep actual growth aligned with this potential,” he said.

“At the same time, we have been laying down the necessary investments to future-proof the economy amid environmental, technological, and geopolitical disruptions,” he said. — Aubrey Rose A. Inosante