Marcos Administration Faces Challenges in Economic Growth Amid Corruption and Political Instability

The Marcos administration's mid-term scorecard reflects encouraging economic performance, with an average GDP growth of 5.6 percent in 2023-2024 and a projected 5.3 percent growth in 2024. However, concerns over corruption and political instability risk undermining this progress, with the Philippines ranking among the most corrupt countries in Asia and facing high-profile political tensions between the President and Vice President. Persistent issues with corruption and political instability could hinder the country's ability to keep pace with top-performing economies in Southeast Asia, such as Vietnam and India.

Key Takeaways:

• The Marcos administration's economic performance has shown encouraging signs, with an average GDP growth of 5.6 percent in 2023-2024.
• However, corruption and political instability remain significant concerns, with the Philippines ranking among the most corrupt countries in Asia.
• The abolition of the Presidential Anti-Corruption Commission and lack of transparency in the country's sovereign wealth fund have heightened fears of backsliding in the fight against corruption.
• The impeachment complaints against the Vice President continue to weigh on the country's efforts to become more politically stable.
• The Marcos administration has allocated a budget of P1.367 trillion for implementing transparent governance and institutional efficiency in 2026.
• The President aims to deepen participatory governance, bolster public accountability, and strengthen government systems through meaningful reforms.

Statistics:

• GDP grew by an average of 5.6 percent in 2023-2024.
• GDP is projected to grow by 5.3 percent in 2024.
• Inflation has been below 2 percent since March 2025, averaging 0.9 percent in July.
• The country's sovereign wealth fund has remained unfazed, vowing to continue with investment plans despite concerns over lack of transparency.
• The Marcos administration intends to allocates P1.191-trillion National Tax Allotment, P16.1-billion Local Government Support Fund, and P1.5 billion for the National Government Data Center Infrastructure in 2026.

Sources:

• Capital Economics (brief on the administration's mid-term scorecard)
• President's budget message to the House of Representatives for the 2026 National Budget
• Department of Budget and Management (DBM) press release on joining the global Steering Committee of the Open Government Partnership in October 2024
• Open Budget Survey cited in the President's budget message
• Congressional Report on the Maharlika Investment Fund (MIF) Act of 2023.