The Philippine economy grew by just 4% in the third quarter of 2025, marking a four-year low, according to the Philippine Statistics Authority. A corruption scandal in flood control projects has dampened investor and consumer confidence. This slowdown highlights ongoing challenges amid the country's development.
The Philippine Statistics Authority reported that the country's gross domestic product (GDP) grew by just 4% in the third quarter of 2025, down from 5.5% in the second quarter. This marks the lowest growth rate since the same period in 2021, impacted by corruption issues.
According to the report, a scandal involving flood control projects is the primary reason for the dip in confidence. Irregularities in funding for anti-flood initiatives have led to hesitation among investors and consumers, resulting in reduced economic activity. While the exact cost of the corruption was not specified, it ties into broader concerns over government fund management.
In context, the Q3 growth remains within the annual target of 6-7%, but it falls short of previous quarters. The government plans reforms to restore confidence, while anti-corruption laws continue to be reviewed. No direct mentions of other factors like inflation or global impacts appear in the report, with the focus on local corruption issues.
This slowdown serves as a caution for ongoing oversight of government spending, especially on critical projects like disaster infrastructure.