Marcos bets on speedy economic recovery

MANILA, Philippines — President Marcos said yesterday that he expects the economy to recover after the country’s gross domestic product (GDP) grew at its slowest pace in four years in the third quarter, as the flood control controversy weighed on consumer and investor confidence.

“The reason that we had that is that there really was a downturn in economic activity. You have to remember it’s not only because of these (anomalous flood control projects), the storm, the working days lost in our economy because of climate change,” Marcos said at a press conference.

The peso depreciated to a new low on Wednesday, closing at  59.17 against the dollar amid market concerns over sluggish economic growth and governance issues.

“You have to also remember the situation, the global situation. We are not the only ones suffering the shocks that come from the new trade structure that has been imposed on the rest of the world,” Marcos said.

National Statistician Dennis Mapa said the country’s GDP grew by four percent in the third quarter, slower than the previous quarter’s 5.5 percent expansion and the 5.2 growth posted in the third quarter last year.

This also marked the lowest growth since the 3.8-percent contraction in the first quarter of 2021 during the COVID pandemic.

The latest growth outturn brought average growth from January to September to just five percent, below the government’s growth target of 5.5 to 6.5 percent for this year.

“We are all adjusting to that. That’s why the growth rates of all groups all around the world are falling. But we have taken a lot of measures because the public spending now will be increased to make sure that by the end of the year, the levels of public spending are according to our original plan, so we will recover what was lost in the third quarter,” Marcos said.