THE Employers Confederation of the Philippines (ECoP) expects economic growth to fall below 5% this year amid weak investor confidence, but noted that prospects could improve in 2026 if the government succeeds in restoring trust and pushing through reforms.
In a statement on Friday, ECoP President Sergio R. Ortiz-Luis, Jr. was quoted as saying that this year is shaping up to be “disappointing” for the economy, as investors have become more cautious following corruption and flood control controversies.
In the third quarter, gross domestic product grew by 4%, the slowest in over four years, bringing the nine-month average to 5%. This was below the government’s revised full-year growth target of 5.5% to 6.5%.
Mr. Ortiz-Luis, who is also the president of the Philippine Exporters Confederation, Inc., said subdued investor sentiment is reflected in the sharp decline in investment-related visits to the Philippines, which he said will further put the country behind its regional peers.
Looking ahead, Mr. Ortiz-Luis said the Marcos administration needs to intensify efforts to rebuild investor confidence to support job creation, particularly as an estimated 800,000 to one million new graduates are expected to enter the labor force next year.
“Winning back capitalists can be done mainly by focusing on important matters, such as the national budget, and refusing to get sidetracked by or to react to irrelevant issues that detract from the main challenges that need swift resolution in order to stabilize the economy in 2026,” ECoP said in the statement, quoting Mr. Ortiz-Luiz.
The unemployment rate rose to 3.8% in September from a year earlier, equivalent to 1.96 million jobless Filipinos, reflecting the impact of recent natural disasters.
Mr. Ortiz-Luis also called on the government to grant greater authority to the Independent Commission for Infrastructure so it can fully investigate alleged corruption, irregularities, and misuse of funds in flood control and other major infrastructure projects.
The commission was created through Executive Order No. 94 amid a scandal involving lawmakers and public works officials accused of siphoning billions from flood control projects.
Mr. Ortiz-Luis said the business sector is awaiting the identification and arrest of those behind the alleged irregularities as proof of the government’s commitment to addressing corruption. — Vonn Andrei E. Villamiel