The Marcos administration expects a pickup in infrastructure spending to provide fresh momentum for the economy in the second half of the year as public works projects delayed by government reviews gradually resume.
Speaking at a Palace briefing on Thursday, Presidential Communications Office Undersecretary and Press Officer Claire Castro said stronger infrastructure disbursements should help lift economic activity after a weaker-than-expected start to the year.
“Since ngayon ay gumaganda naman ang paggastos sa imprastraktura… nakikita sa second half this year ay malamang magkakaroon na ng konting improvement,” Castro said.
The renewed spending push comes as the government seeks to bolster growth following first-quarter economic expansion that fell short of expectations amid elevated oil prices, inflationary pressures and persistent global uncertainties.
Infrastructure has traditionally been one of the country’s strongest growth engines, creating employment, stimulating demand for construction materials and improving logistics that support business activity and private investment. Economists also view public construction spending as having significant multiplier effects, particularly when private sector confidence remains cautious.
President Ferdinand Marcos Jr. earlier directed agencies to accelerate the release of funds for priority infrastructure projects, especially those already under construction before a government review temporarily slowed implementation.
The review was prompted by allegations involving “ghost” flood control projects, leading authorities to scrutinize infrastructure contracts more closely. While the process delayed some disbursements, the administration said legitimate projects are now moving forward under tighter oversight to improve transparency and accountability.
The faster rollout could also help offset weaker external demand by strengthening domestic investment, a key pillar of economic growth.
Although the government recently lowered its 2026 GDP growth target to 3.5-4.5 percent from the earlier 5-6 percent range, officials remain optimistic that accelerating infrastructure execution will provide a meaningful lift to economic activity in the months ahead and reinforce the country’s medium-term growth outlook.
