Government to increase infrastructure spending (opens original article in a new tab)

The Philippine government is adjusting its economic strategy by lowering 2026 growth targets and increasing infrastructure spending, citing the need to address budget execution issues and external challenges like the global oil crisis and Middle East war impacts.

• Government lowers 2026 growth target to 3.5-4.5% due to global oil crisis and underspending
• Officials plan to fast-track infrastructure projects and increase spending in second half of 2026
• Budget department admits being too cautious last year due to flood control corruption scandal
• Government aims to improve budget execution and infrastructure quality through strategic investments
• Philippine economy grew 2.8% in Q1 2026, below expectations due to flood control controversy and Middle East war impacts