‘Growth at risk from slump in public construction works’MANILA, Philippines — Private construction growth in the Philippines is being driven largely by residential projects and concentrated among big developers, while credit is increasingly flowing to consumption rather than productive investment, prompting economists to warn about the weakening quality and sustainability of growth. Latest data from the Philippine Statistics Authority showed private construction expanding by 13.9 percent even as public construction collapsed by 26.2 percent. While private construction can continue in the near term due to existing pipelines, Asuncion warned that “sustaining growth will be difficult if public construction continues to contract,” noting that “public infrastructure tends to crowd in private investment by improving connectivity and boosting demand.”“A prolonged slump raises downside risks for the sector,” he said. Over the longer term, he said private construction cannot thrive without public infrastructure. “Investment is weak, public construction has contracted sharply, and consumption is increasingly credit-driven.”

Source: Philippine Star January 11, 2026 16:36 UTC