Infrastructure spending target cut points to prolonged fiscal dragFrom AB Capital's The Opening Bell: Three MovesEventThe Department of Budget and Management trimmed the Philippines’ 2026 infra spending target to 4.3% of GDP (i.e. The updated target reflects tighter scrutiny and slower execution in the wake of flood control project reviews. With infra spending below the level needed to meaningfully lift capex, its contribution to GDP is likely to remain muted without execution acceleration. Conversely, further slippage would deepen the fiscal drag and weigh on capex confidence. ActionIn our view, slower infra lift supports a continued underweight on construction-linked equities while favoring sectors with more stable demand fundamentals.

Source: Philippine Star January 14, 2026 07:29 UTC