Following the lower-than-expected third-quarter growth, the Department of Budget and Management (DBM) said it will prioritize agriculture and climate action to foster stronger economic growth in the year’s final three months.

“We will reinforce our prioritization of agriculture and climate action for a stronger fourth-quarter performance,” DBM Secretary Amenah Pangandaman said, noting that recent typhoons and severe weather impacted the 5.2 percent growth rate in the third quarter.

Specifically, agriculture contracted by 2.8 percent due to El Niño and typhoons, and public construction declined due to weather disruptions.

Pangandaman also noted that government spending grew by 5.0 percent in the third quarter, following a double-digit 11.9 percent increase in the previous quarter and a 6.7 percent rise from the same period last year.

Pangandaman said this reflects the impact of recent reforms designed to expedite the implementation of government programs and projects.

Therefore, the government will focus on budget strategies that promote infrastructure, human capital development, and improved access to services, including transportation, healthcare, and higher salaries for government workers.

The DBM anticipates continued growth in private consumption, as inflation and interest rates have decreased in recent months.

“With this, we are optimistic that we will remain on track with our year-end [gross domestic product] GDP growth target of 6.0 to 7.0 percent, as we anticipate increases in holiday spending, more stable commodity prices, lower interest rates, and a robust labor market this fourth quarter,” the DBM said.

Meanwhile, Department of Finance (DOF) Secretary Ralph G. Recto said the country’s “strong” economic momentum at the Nov. 7 Stratbase Pilipinas Conference, noting that the economy has doubled in size since 2013 and is projected to double again by 2030.

Recent forecasts predict the Philippines will rise from the world’s 34th largest economy in 2023 to 28th by 2029, with Goldman Sachs foreseeing it as the 14th largest by 2075.

Favorable demographics, with a growing working-age population, are expected to drive GDP per capita growth, boosting consumer demand and investments, the DOF stated.

“This is a golden moment, and we are committed to taking full advantage of it to strengthen our already dynamic labor force,” Recto said.

“It is only right that we take it as our collective duty as a nation to invest in the skills and education of our young population to fully capitalize on this demographic dividend,” he added.

To this end, the finance chief stressed the critical role of the private sector in shaping the country’s future as a catalyst for growth.

“We recognize that the private sector’s role is indispensable in this quest. You are our major economic lifeline. You have the power to accelerate or break our growth momentum,” he said.

Recto noted the Private Sector Advisory Council's role in shaping policy through regular government-private sector collaboration, emphasizing transparency, innovation, rule of law, and good governance.

Reforms like the Public-Private Partnership (PPP) Code are driving investments to boost the economy and uplift Filipino lives, the finance chief said.

Recto urged the private sector to participate not only in physical connectivity projects but also in developing the digital infrastructure required for the new economy, such as data centers.

He also noted the importance of the CREATE MORE bill in attracting capital-intensive investments and foreign investors, citing strong interest shown at recent Philippine economic briefings abroad.

“We are doing all of this to achieve our ultimate goal: to lift 8 million more Filipinos out of poverty by 2028,” Recto said, adding that inclusive growth, economic and national security, and shared prosperity will be the true measures of the government's efforts.