Malacañang acknowledged that corruption concerns affected economic growth after the government became more cautious in releasing funds for infrastructure projects while corruption issues were being investigated.
Palace Press Officer Claire Castro made the statement in response to the latest Philippines Economic Update from the World Bank, which said governance concerns related to corruption had caused delays in public investment and affected business confidence.
Castro said the administration became more cautious about releasing funds for infrastructure projects after President Ferdinand Marcos Jr. ordered investigations into corruption allegations.
According to Castro, the administration saw the extent of the problem during the investigations, prompting greater caution in the release of funds for infrastructure projects.
The Palace expects government spending to strengthen in the second half of the year and contribute to improved economic growth.
The World Bank’s assessment cited governance concerns and their effects on public investment and business confidence.
Castro also said the Middle East crisis has added to the economic challenges by affecting petroleum prices.
In response to the situation, the administration is implementing the UPLIFT program, according to Castro.
The government is also continuing to monitor inflation and other economic effects linked to the Middle East crisis.
The Palace’s acknowledgment comes as the government seeks to increase spending in the second half of the year while addressing concerns surrounding infrastructure investments and the broader economy.
Castro said the government remains focused on monitoring the effects of the economic challenges and implementing measures in response to them.
The World Bank’s update and the Palace’s response highlight the impact of governance concerns, investment delays and external economic pressures on the country’s growth outlook.
