The Philippines is expected to miss its economic growth target for the third straight year in 2025 following weaker-than-expected third-quarter performance, as corruption concerns dampen consumer and investor sentiment, a top economic official said Monday.

Department of Economy, Planning, and Development (DepDev) Secretary Arsenio Balisacan said the economy is “very unlikely” to meet the already downgraded growth target range of 5.5% to 6.5% set by the inter-agency Development Budget Coordination Committee (DBCC).

“Honestly, that’s very unlikely now. We need to grow roughly 7% in the fourth quarter to achieve 5.5% growth for the year, and given the situations and the data that are coming out, that’s quite unlikely,” he told reporters in Mandaluyong City.

“At the moment, the first three quarters have delivered 5% growth. If we can sustain 5% for the year, that’s still, to me, quite respectable. Our intention is to move back to the top tier of the target range,” he added.

If full-year growth falls below 5.5%, 2025 would mark the third consecutive year the Philippines falls short of its economic target. Growth hit 5.6% in 2024, below the 6.0%–6.5% goal; and 5.5% in 2023, lower than the 6.0%–7.0% target.

Economic expansion averaged 5% in the first nine months of 2025, after third-quarter GDP slowed to 4.0%—the weakest in four years, and the lowest since the 3.8% recorded in the first quarter of 2021 when strict COVID-19 lockdowns were in place.

The slowdown comes as the country grapples with corruption revelations. In his State of the Nation Address in August, President Ferdinand “Bongbong” Marcos Jr. disclosed that 20% of the P545-billion budget for flood control projects went to just 15 contractors—a “disturbing assessment,” he said.

Both chambers of Congress are conducting separate inquiries into alleged irregularities in public works spending, alongside an investigation by the newly established Independent Commission for Infrastructure (ICI), which is tasked with probing possible anomalies and misuse of funds in flood control and other infrastructure projects.

“Amid these governance issues, it is imperative that while we pursue transparency and accountability, we ensure that the economic gains we have reaped over the years are not only protected but sustained and deepened,” Balisacan said.

“Only by keeping our growth momentum through steady and sound economic policies, and a steadfast commitment to uplift the lives of ordinary Filipinos, can we earn and maintain our people’s trust in government,” he added.