ADB: Corruption ‘impact’ could hit growth By Cai U. Ordinario and Erwin James T. Gianan
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LOBAL uncertainties and the “broad impacts” of corruption could further weaken the country’s economic growth this year and next year, according to the Asian Development Bank (ADB). In its Asian Development Outlook (ADO) for September, ADB said it now expects the country’s GDP growth to slow to 5.7 percent in 2026 from the 5.8 percent estimate for 2026 it made in July 2025. The forecast for this year pegged at 5.6 percent was the same estimate in July but was slower than the 6 percent estimate
it released in April. ADB Country Director for the Philippines Andrew Jeffries said the global uncertainties stemmed from the impact of higher US tariffs on the economy. However, while ADB did not yet account for its impact, the controversy surrounding flood control projects could further undermine economic growth. “We didn’t see a reason to reduce GDP projections due to that issue [flood control], but it’s certainly a heightened risk; between now and our December update there may be more quantifiable data available that may alter our projections,” Jeffries said during a media briefing.
Higher United States tariffs imposed on various commodities worldwide have created global policy uncertainty which has slowed down growth, particularly in advanced economies. The impact of higher tariffs, which the Philippines has not escaped, and the impact on advanced economies could also dim the economic prospects of the country. The United States slapped a tariff of 19 percent on all Philippine goods entering the American market beginning in August 2025. This new rate was a result of negotiations between Washington and Manila which occurred in July. Nonetheless, ADB said, the impact of these uncertainties may be
cushioned by the country’s strong domestic demand given the slowdown in inflation. The increase in commodity prices remained below the 2 to 4 percent target set by the Bangko Sentral ng Pilipinas (BSP). ADB projected that inflation could average 1.8 percent this year and pick up to 3 percent next year. Both forecasts are within the inflation target of 2 to 4 percent set by the BSP. The benign inflation environment allowed the BSP to continue reducing key policy rates. In the last Monetary Board meeting, the central bank reduced the Target Reverse Repurchase rate by 25 basis points to 5 percent in what See “ADB,” A2
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Wednesday, October 1, 2025 Vol. 20 No. 353
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
WATERWORLD Floodwaters engulf homes in Calumpit, Bulacan, on Tuesday, September 30, 2025, after days of heavy rain from typhoons and easterlies. PAGASA has warned residents in low-lying and flood-prone areas to remain on alert, noting that five to nine more tropical cyclones may enter or develop in the Philippine Area of Responsibility before year’s end. Despite billions spent on flood-mitigation projects in Bulacan—including controversial “ghost” flood control structures flagged by state auditors—residents continue to face recurring inundations. NONOY LACZA
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By Reine Juvierre S. Alberto @reine_alberto
HE national government’s outstanding debt slightly dipped to P17.468 trillion as of the end of August, with the debt stock seen to increase in the coming months due to more borrowings. Latest data from the Bureau of the Treasury (BTr) showed the outstanding debt posted a marginal drop of 0.5 percent or P95.07 billion from P17.563 trillion from end-July. The Treasury explained this was due to the full repayment of local bonds worth P526.34 billion and a stronger peso, which reduced the value of the country’s external debt. According to John Paolo Rivera, senior research fellow at state-run
think tank Philippine Institute for Development Studies, the decline in outstanding is due to scheduled debt repayments, which are normal and expected in managing liabilities. “However, this does not signal a downward trend. [Year-on-year], the debt stock is still significantly higher indicating continued borrowing to finance the budget deficit and support expenditures,” Rivera See “NG’s,” A2
ASSETS COVERED BY AMLC FREEZE ORDER NOW AT P2.9B By Cai U. Ordinario
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@caiordinario
HE Anti-Money Laundering Council (AMLC) received a new freeze order from the Court of Appeals (CA) bringing the total value of the frozen assets to P2.9 billion. In a statement, the new freeze order covered a total of 836 bank accounts, 12 e-wallet accounts, 24 insurance policies, 81 motor vehicles and 12 real estate properties. With the latest freeze order, the AMLC through the CA has
frozen a total of 1,563 bank account; 54 insurance policies; 154 motor vehicles; and 30 real estate properties. The latest freeze order is the first time the AMLC included electronic wallets. “By freezing a wide range of assets-such as bank accounts, e-wallets, vehicles, and properties—the AMLC is disrupting the financial channels used in corrupt activities,” said AMLC Executive Director Atty. Matthew M. David. “Our goal is straightforward: prevent stolen public funds See “Assets,” A2
Farm-to-market roads also probed by DPWH By Samuel P. Medenilla
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@sam_medenilla
HE Department of Public Works and Highways (DPWH) has expanded its internal anti-corruption probe to now include not only flood control projects, but also farm-to-market roads, according to Malacañang. Palace Press Officer Claire Castro made the pronouncement after the Department of Agriculture (DA) ordered on Monday an audit of ghost or non-existent farm-to-market roads, which were built from 2021 to 2025. She said DPWH Secretary Vivencio “Vince” B. Dizon has also initiated their separate probe on this
type of public works. “I also spoke with Secretary Vince this morning, and he said that they are also looking into this because a solution [to this issue] should be found as soon as possible,” the Presidential Communications Office undersecretary said in Filipino in a press briefing in Malacañang on Tuesday. The anomalous flood control projects are also being investigated by the Independent Commission for Infrastructure (ICI). Marcos created the ICI through Executive Order (EO) No. 94 to investigate sub-standard and non-existent public works then See “Farm,” A2
PESO EXCHANGE RATES n US 58.0420 n JAPAN 0.3907 n UK 77.9736 n HK 7.4574 n CHINA 8.1499 n SINGAPORE 45.0112 n AUSTRALIA 38.1510 n EU 68.0717 n KOREA 0.0414 n SAUDI ARABIA 15.4766 Source: BSP (September 30, 2025)