Corruption and inflation may have cost the Philippine economy an estimated P2.75 trillion over the 12 months to the second quarter of 2026, Senate President Sherwin Gatchalian said Thursday, as lawmakers launched an inquiry into the country’s slowing growth and weakening investment.
Gatchalian presented the estimate at the first hearing of the Senate Ad Hoc Committee on Reinvigorate Investment and Sustainable Economic Growth (RISE), which is tasked with identifying measures to revive investments and put the economy back on a stronger growth path.
He stressed that the P2.75-trillion figure covers foregone economic opportunities and estimated losses, rather than representing an accounting of government funds proven to have been stolen.
“Hindi pa naman too late, we’re not saying it’s too late. What we’re saying is we need to get ourselves in order. We need to strategize,” Gatchalian said.
The hearing comes as the economy posts its weakest expansion in years outside the pandemic period. Committee chair Sen. Risa Hontiveros said quarterly growth slowed from 3.9 percent in the third quarter of 2025 to 2.3 percent in the second quarter of 2026.
Economic Planning Undersecretary Reynaldo Cancio cited weaker consumer and business confidence amid governance concerns, reduced infrastructure spending and the Middle East crisis as factors weighing on economic activity.
Investment has also weakened sharply. Total investment contracted 6.5 percent in the first half of 2026, while public construction fell 32 percent, Cancio said. Exports provided a counterpoint, expanding 10 percent during the period.
The Senate inquiry is examining how governance, inflation, geopolitical disruptions and domestic investment conditions are affecting the country’s growth prospects.
For businesses, the discussion highlights the potential economic cost not only of direct losses but also of delayed investments, weaker confidence and reduced productive activity.
Hontiveros said the committee’s findings will be transmitted to the Senate finance committee for consideration in upcoming budget deliberations, potentially linking the inquiry’s recommendations to government spending priorities and measures intended to support investment and sustainable economic growth. (Marjohara Tucay)
