Government underspending due to corruption probe slowed growth, but target remains achievable.

Government underspending in Q3 2025, due to a corruption crackdown on flood control projects, slowed economic growth, with disbursements at P1.46 trillion—P141.73 billion below target—mainly from reduced infrastructure spending. Finance Secretary Ralph G. Recto said the 5.5% to 6.5% GDP growth target remains achievable despite forecasts ranging from 4.8% to 5.7%, citing strong fundamentals. The government has released 73.72% of its annual disbursement plan. Stocks dipped amid foreign outflows and peso weakness, though some sectors held steady. Official GDP data is set for release on November 7.