IBON: PH growth slows to 14-year low as public construction contracts by 26%
By Edison Joseph Gonzales | Bilyonaryo News Channel | November 9, 2025, 3:20PM
(PHOTO: BILYONARYO NEWS CHANNEL)
The Philippine economy expanded at its slowest pace in 14 years in the third quarter, as a sharp drop in public construction revealed the fragility of the country’s recent growth, according to the research group IBON Foundation.
Gross domestic product rose 4 percent from a year earlier, government data showed. The slowdown was largely driven by a 26.2 percent contraction in public construction, which the administration of President Ferdinand Marcos Jr. attributed to stricter project validation and delays in disbursements.
IBON said the decline reflected deeper structural problems. The group described the economy as “corruption-driven and exclusionary,” arguing that past growth had been inflated by irregular infrastructure spending and weak oversight.
“When ghost projects and overpriced contracts are removed, the economy’s fragility becomes visible,” IBON said in a news release on Nov. 8.
The slowdown has affected households already contending with high prices and stagnant wages. Consumer spending, which accounts for more than two-thirds of the economy, grew just 4.1 percent, the weakest pace since 2010 outside the pandemic years.
Employment fell by 327,000 compared with a year earlier, while the average daily minimum wage of P487, roughly $8.40, remains far below the estimated P1,225 needed for a family of five to live decently.
“The gains of the past decade were never inclusive,” said IBON. “They enriched those in power while leaving millions behind.”
The government’s growth target of 5.5 to 6.5 percent for 2025 now appears in doubt. Economic expansion has slowed steadily, from 7.7 percent in 2022 to 6 percent in 2023, 5.2 percent in 2024, and 4 percent this year.
IBON and other economists warned that the Philippines’ reliance on foreign investment and overseas remittances makes it vulnerable to global economic pressures. They called for increased investment in agriculture and local industries to create stable jobs and boost productivity.
“The Philippines needs an economy built on integrity and inclusion,” IBON said. “Without that, growth will remain fragile, and ordinary Filipinos will continue to pay the price.”
Source: Bilyonaryo News Channel
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