Marilyn Cahatol

The facade of the Bangko Sentral ng Pilipinas, adorned with a new logo featuring a gold-colored, full-bodied Philippine eagle with wings spread upward and stars positioned above,  at the Bangko Sentral Headquarters in Quezon City on February 9, 2024. Maria Tan, ABS-CBN News

Article (news)

Jekki Pascual

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/176000881767320240209-bsp-facade-new-logo-MT-6.jpg" style="width:960px" class="fr-fic fr-dib"/><span class="fr-inner" style="text-align:left">The facade of the Bangko Sentral ng Pilipinas, adorned with a new logo featuring a gold-colored, full-bodied Philippine eagle with wings spread upward and stars positioned above,  at the Bangko Sentral Headquarters in Quezon City on February 9, 2024.<em> Maria Tan, ABS-CBN News </em></span></span></span></div><p>MANILA — The Bangko Sentral ng Pilipinas said the country might not hit the government&#x27;s gross domestic product (GDP) target this year due to the ongoing flood control controversy.</p><p>BSP Governor Eli Remolona Jr. said the issue on infrastructure spending is negatively affecting business sentiment, forcing the BSP to soften growth outlook in the near term. </p><p>The government has set the GDP target for 2025 between 5.5 percent to 6.5 percent. But the central bank said the annual growth may be below the target.</p><div><a href="https://www.abs-cbn.com/news/business/2025/8/7/philippine-gdp-growth-quickens-to-5-5-percent-in-second-quarter-1009"><strong>Philippine GDP growth quickens to 5.5 percent in second quarter</strong></a></div><p>“Governance concerns on public infrastructure spending has weighed on business sentiment, the stock market has declined, and there are now fewer companies with expansion plans,” said Remolona.</p><p>He added, “As the extent of the issues related to infrastructure spending became clear, our estimates of the output gap needed to be recalibrated. We now think the gap is wider than we thought.”</p><div><a href="https://www.abs-cbn.com/news/business/2025/10/9/bangko-sentral-cuts-benchmark-rate-by-25-basis-points-1443"><strong>Bangko Sentral cuts benchmark rate by 25 basis points</strong></a></div><p>When asked how much these infrastructure spending issues impact the economy, Remolona said that the difference between initial growth forecasts in recent years and actual growth which is usually lower — is the cost or impact of anomalous projects.</p><p>“What we thought was going to investment wasn’t going there at all. The reason we were underperforming is, I think, large part because of the governance issue related to infrastructure spending,” he said.</p><p>Remolona said there is still a chance for business sentiment to improve again and that is to see where the investigation on the issue will lead.</p><p>“We need a credible resolution on this issue,” the governor said.</p><div><a href="https://www.abs-cbn.com/news/business/2025/10/9/gov-t-to-study-tax-holiday-push-after-flood-control-mess-malaca-ang-1529"><strong>DOF, DBM have to ‘carefully study’ tax holiday proposals after flood control mess: Malacañang</strong></a></div><div><br/></div><div><strong>RELATED VIDEO:</strong></div><div style="text-align:center"><iframe width="560" height="315" src="https://www.youtube.com/embed/8SG6w5yM_Ac?si=ZbfxQtu1EriRLOt2" title="YouTube video player" frameBorder="0" allowfullscreen=""></iframe><br/></div>

<p>The Bangko Sentral ng Pilipinas said the country might not hit the government's gross domestic product (GDP) target this year due to the ongoing flood control controversy.</p>

The Bangko Sentral ng Pilipinas said the country might not hit the government's gross domestic product (GDP) target this year due to the ongoing flood control controversy.

BSP: PH may miss GDP target due to flood control issue

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BSP: PH may miss GDP target due to flood control issue

Jekki Pascual,

ABS-CBN News

Published October 09, 2025 07:33 PM PHT

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