DoF Projects PH Economy to Grow Below Target Next Year

Philippine Economy to Expand 5-6% in 2026 – Department of Finance

According to the Department of Finance, the economy is projected to expand from 5 to 6 percent in 2026, which is below the earlier targets due to economic challenges and slow growth affecting this projection. Not to mention, political issues are also contributing to the slower-than-expected economic development. In this article, let’s discuss the financial targets and forecasts between 2026 and 2030 that can shape the future in the next five years.

​Economic Targets & Projections

In an interview, outgoing Finance Secretary Ralph Recto stated that the Cabinet-level Development Budget Coordination Committee intends to reassess every economic target set for 2026 to 2030, such as the revenue collections. In addition, he also mentioned that the economy will grow five to six percent for the upcoming year and then may take a quarter to return to the regular growth rate.

Moreover, Recto underscored the importance of regaining the trust of business leaders and consumers through transparency and accountability. While the deficit is being addressed, the growth rate towards the end of the year is still an issue. However, he assures that the government has already determined the challenges and looks forward to a better tomorrow.

Before 2025 ends, the economy may settle at four to five percent, with a GDP growth for the year of 4.7 to 4.8 percent. This projection is expected to happen by the fourth quarter, while the full-year growth in 2026 is projected to surpass the five percent rate. Additionally, Recto explained that no matter the deficit target for the year, including debt, the administration will not borrow more than the targeted amount.

Meanwhile, the Bureau of the Treasury’s report shows the outstanding national debt eased for two consecutive months, August and September, after reaching a record high in July. Although it declined to PHP 17.46 trillion, it’s still beyond the ceiling of PHP 17.35 trillion of 2025. The finance department may need to double its efforts in supporting the Philippine economy as Filipinos fight inflation year after year.

​Final Thoughts

With the economic growth rate falling below the target in the following year, Filipinos must remain mindful of their budgeting and spending. While the Department of Finance is optimistic about the future of our national economy in the next five years, economic challenges remain on the horizon. Looking at this from a real estate perspective, the buying decision should be weighed down before making any investments.
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