President Ferdinand Marcos Jr. attributed the slowdown in the Philippine economy to high global oil prices and delays in government spending, following the peso’s fall to an all-time low of 62.68 against the US dollar.
Marcos said global oil prices are a major driver of inflation, particularly amid conflicts in the Middle East affecting key shipping routes such as the Strait of Hormuz and the Red Sea.
He explained that while core inflation, excluding food and petroleum prices, remains at around 2% to 3%, food prices quickly rise whenever oil prices increase.
Aside from external factors, Marcos also cited delays in public spending as a factor affecting employment and economic growth.
The delays followed inspections and reviews of Department of Public Works and Highways construction contracts last year after investigations were ordered into alleged irregularities in infrastructure projects.
Marcos said investments and the release of government funds for projects are now picking up again.
He expressed hope that economic indicators would begin improving in the coming months as spending and investment activity recover.
