Go: PH eyes 5-6% growth as reforms boost investment climate

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THE Philippine economy is expected to regain a 5-6% growth pace in the second half of 2026 as government spending picks up and reforms continue to strengthen the country's investment climate, Finance Secretary Frederick Go said.

Speaking at the Mandaue Chamber of Commerce and Industry (MCCI) Business Summit 2026, Go said the country's economic fundamentals remain stable despite slower growth over the past year.

“My single message for the Philippine economy is that our long-term fundamentals remain intact and on solid footing,” Go said, citing GDP growth, manageable inflation, a strong labor market and prudent fiscal management.

He attributed the recent slowdown to weaker government spending and the impact of higher oil prices following disruptions linked to the Strait of Hormuz.

Infrastructure agencies, however, are expected to accelerate spending in the second half of the year.

Go also highlighted the Philippines' new classification as an upper-middle-income economy by the World Bank, saying it could help attract investments and lower borrowing costs for both government and businesses.

He pointed to several reforms intended to make the country more attractive to investors, including the CREATE MORE Act, the new Public-Private Partnership Code, the Investors' Lease Act allowing leases of up to 99 years, the Accelerated Right-of-Way Act and the Capital Markets Efficiency Promotion Act, which reduced the stock transaction tax from 0.6% to 0.1%.

Go said more than 200 flagship infrastructure projects are available for public-private partnerships, while the government is also promoting priority investment areas through its Strategic Investment Priority Plan.

For businesses, he cited reduced SEC fees for MSMEs, longer importer accreditation periods and lower creditable withholding taxes for selected industries.

He also noted efforts to cut digital transaction fees and remove convenience charges for payments involving government agencies.

Meanwhile, remittances, BPO revenues and exports remain key economic drivers.

Goods exports reached a record $85 billion in 2025, while investment approvals totaled ₱1.9 trillion in both 2024 and 2025. 

The government is also pursuing additional trade agreements and expanding investment opportunities in sectors such as shipbuilding and electric vehicle manufacturing.

Go also discussed the Luzon Economic Corridor, which seeks to improve logistics connectivity from Subic to Batangas and reduce business costs.

“I'm very confident that in the second half of this year and the next year, we will resume our growth trajectory of 5-6% economic growth rate,” Go said.

The MCCI Business Summit 2026, held under the theme “Navigating Change, Rising Stronger,” also featured discussions on geopolitics, disaster resilience, housing, future industries, green infrastructure and circular economies.(MyTVCebu)