Amid ongoing political debates and social challenges, a recent report from a respected global institution has cast a shadow over the government’s upbeat narrative about the economy. The World Bank’s latest assessment paints a sobering picture of the Philippines’ economic trajectory, calling into question the administration’s repeated claims of growth and stability. The result: a growing public debate over whose numbers can be trusted.
The controversy began when details from the World Bank’s June 2025 Philippine Economic Update emerged. The report was unambiguous: the country’s economic growth is slowing. This assessment contrasts sharply with statements from Palace spokespersons, including Attorney Claire Castro, who continue to assert that the economy remains strong and expanding.
According to the World Bank, the Philippines is unlikely to meet the government’s 2025 growth target of 6%. Senior Country Economist Jafar Al Rikabi cited multiple factors contributing to this slowdown, highlighting that domestic conditions alone are not to blame. External pressures—such as global policy uncertainty, declining international trade, and geopolitical tensions—have also weighed heavily on the economy.
The report further noted that the services and industrial sectors are showing signs of deceleration. Exports, a key driver of growth, are weakening, and fiscal challenges persist. The country’s fiscal deficit reportedly surged to 7.3% of GDP in just the first quarter of the year.
The findings align with a recent statement from Vice President Sara Duterte, who publicly described the economy as “falling” and emphasized that the downturn is beyond her office’s control. The conflicting narratives between the Palace’s optimistic messaging and both the World Bank and the Vice President’s observations have intensified public scrutiny.
For ordinary citizens, the discrepancy is more than just numbers—it has real-world consequences. A slowing economy can translate into fewer job opportunities, weaker industrial output, and increased challenges for families struggling with everyday expenses.
At the same time, political maneuvering appears to be intensifying. Reports suggest that Senator Rodante Marcoleta may face removal from office, a development linked to investigations by the Commission on Elections (COMELEC) under Chairman George Garcia. Observers have pointed out the suspicious timing, noting Marcoleta’s recent involvement in exposing alleged anomalies related to Speaker Martin Romualdez through the controversial Orly Gotesa campaign. Critics allege that the COMELEC’s actions may be retaliatory, targeting senators who have clashed with powerful allies of the administration.
The focus on specific senators—Marcoleta and Chiz Escudero—has drawn further criticism, especially given unresolved issues that arguably warrant greater attention, including alleged 18 million overvoted ballots in the last election and ₱9 billion in election funds whose use remains unclear.
Taken together, the World Bank report, the Vice President’s warnings, and apparent political pressures paint a picture of a government facing both economic headwinds and internal discord. For the public, the result is confusion and anxiety. Citizens seek transparent governance, a stable economy, and fair political processes—but what they see instead is a cycle of conflicting narratives and power struggles, while pressing national challenges remain unresolved.
The World Bank’s findings present the administration with a critical choice: acknowledge reality and lay out a credible plan to address the slowdown, or risk further public mistrust by maintaining an overly optimistic narrative. The lesson is clear: presenting a rosy image while the foundations of the economy are shaky does little to solve the nation’s challenges. Only honesty and a clear, actionable plan can restore confidence and set the country on a path toward genuine economic recovery.