Capital Economics senior Asia economist Gareth Leather says Philippine GDP growth slowed in Q3, driven mainly by a household spending squeeze from higher energy prices, though signs indicate the corruption-related drag is receding. Other Q3 components, notably exports, were more encouraging. The government is pushing to restart stalled infrastructure projects but may tighten fiscal policy to rein in a rising debt-to-GDP ratio; investment appears past its worst but recovery could be slow amid wea

Capital Economics senior Asia economist Gareth Leather says Philippine GDP growth slowed in Q3, driven mainly by a household spending squeeze from higher energy prices, though signs indicate the corruption-related drag is receding. Other Q3 components, notably exports, were more encouraging. The government is pushing to restart stalled infrastructure projects but may tighten fiscal policy to rein in a rising debt-to-GDP ratio; investment appears past its worst but recovery could be slow amid weak corporate confidence. Capital Economics forecasts roughly 3.0% GDP growth this year and says the weakness supports the view that, despite rising inflation, the central bank may have finished its tightening cycle.