OECD cuts PHL GDP growth forecast until 2027 due to corruption scandal

The Organisation for Economic Co-operation and Development (OECD) has significantly reduced its Gross Domestic Product (GDP) growth forecasts for the Philippines, expecting it to miss government targets until 2027.

The OECD's revised GDP growth projection for the Philippines in 2025 is now 4.7%, a decrease from the previously estimated 5.6%.

For 2026, the OECD lowered the growth forecast to 5.1% from 6%, and projects a 5.8% growth for 2027, both below the government's targets.

A corruption scandal linked to public works has slowed down public infrastructure project execution, impacting investment and causing public construction to collapse in the third quarter of 2025.

Philippine GDP grew by a weaker-than-expected 4% in the third quarter of 2025, bringing the nine-month growth to 5%.

Household final consumption expenditure and government spending also slowed amid the corruption mess, according to OECD economist Cyrille Schwellnus.