“The flood control corruption scandal weighed on business and consumer confidence,” Economic Planning Secretary Arsenio Balisacan said at a briefing, estimating that 2025 growth would have come in at 5.5% without the scandal. But the government’s probe of the irregularities in public spending “had to be undertaken” to come up with reforms, he added. Despite the holidays, household consumption — a main driver of the economy — decelerated further to its slowest pace since the pandemic. President Ferdinand Marcos Jr, who revealed irregularities in public spending and insisted he will root out graft, is now facing impeachment complaints in connection with the scandals. Stocks have also recovered some ground since retreating at the height of the scandal, but foreign investors remain wary of domestic risks.

Source: The Edge Markets January 29, 2026 04:30 UTC