"Marcos, now leading the 11-nation bloc, has bold plans for his chairmanship in 2026, including signing a pact to integrate the region's digital economy. But he has economic problems closer to home. Investor confidence has withered in the wake of a corruption scandal, as probes discovered that $2 billion in government funding for flood management projects had disappeared. Since September, the Philippines has been rocked by investigations into misallocated funds, tight links between politicians and contractors, substandard materials and "ghost projects." Marcos's approval ratings have dropped amid the scandal."
"The news has put the Philippines' economy on a "weaker footing," says Lavanya Venkateswaran, senior ASEAN economist at OCBC Bank. Third-quarter GDP growth fell to a four-year low of 4%, prompting Manila to slash growth targets for 2026 through 2028."
The Philippines enters 2026 on weaker economic footing due to corruption scandals, complex regional trade pressures and severe storm damage. Probes revealed $2 billion in missing flood-management funding, uncovering misallocated funds, close ties between politicians and contractors, substandard materials and ghost projects that have lowered presidential approval ratings. Typhoon Kalmaegi caused over 200 deaths and more than $60 million in crop and farmland losses. Third-quarter GDP growth fell to a four-year low of 4%, prompting Manila to cut growth targets for 2026–2028. Plans to push regional digital-economy integration face risks from domestic administrative and bureaucratic weaknesses that undermine investor confidence.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]