‘Corruption to drag GDP growth to below 4% in Q4’Aris Dacanay, ASEAN economist at HSBC, said the ongoing investigation into flood control and other public works projects has introduced a level of uncertainty that is already spilling over into fiscal execution and private sector behavior. Yet “as we speak, consumption growth is below five percent in real terms,” Dacanay said. “The intent is to basically boost domestic demand,” Dacanay said, citing the downtrend in confidence indicators and the need for monetary policy to offset weaker fiscal spending. Still, Dacanay cautioned that the fiscal drag from stricter scrutiny of public spending could persist. Looking ahead, Dacanay said 2026 would be a critical year as the Philippines begins its ASEAN 2026 chairship and faces closer international scrutiny.

Source: Philippine Star January 13, 2026 23:30 UTC