Palace says political noise weighing on economic growth

MANILA – Political destabilization efforts are contributing to the Philippines’ economic slowdown, Malacañang said Wednesday, citing calls for President Ferdinand R. Marcos Jr. to step down and other political noise as factors that could undermine economic confidence.

Palace Press Officer Claire Castro said the government was already dealing with external pressures, including the conflict in the Middle East and a series of natural disasters, when political instability further complicates the economic environment.

“Alam natin na malaki ang epekto ng krisis sa Middle East, binanggit na rin natin ang mga kalamidad na pumasok at papasok sa ating bansa, at ang pangatlo, ang political noise na nagsasabing bumaba ang Pangulo (We know that the Middle East crisis has a major impact, we have also mentioned the disasters that have occurred and those that are coming to our country, and third, the political noise calling for the President to step down),” Castro said in a media briefing in Singapore, where Marcos is set to embark on a five-day working visit to woo investors.

Castro made the remarks in response to criticisms from the camp of Vice President Sara Duterte over the administration’s handling of the economy, as well as claims of political persecution in connection with the impeachment case against the Vice President.

She described those behind the efforts as “destabilizers” and “obstructionists,” saying their actions could have economic consequences.

“Ang mga political noise na ito ay nakakaapekto sa ekonomiya (This political noise affects the economy),” she said.

Castro accused the President’s critics of spreading false information, undermining the administration, and seeking to force Marcos out of office.

“At yan ang kanilang intensyon – magsinungaling, gumawa ng fake news, manira ng administrasyon, at pababain ang Pangulo sa pwesto upang maapektuhan ang ating ekonomiya (And that is their intention – to lie, create fake news, undermine the administration and bring down the President from office to affect our economy),” she said.

“Sila ang dahilan kung bakit ang ekonomiya natin ay hindi nagiging maganda… ito talaga ang kanilang intensyon (They are the reason why our economy is not doing well... this is really their intention).”

The Philippine economy grew 2.3 percent year on year in the second quarter of 2026, slower than the 2.8 percent growth recorded in the first quarter.

The government has also lowered its 2026 growth target to 3.5 percent to 4.5 percent amid heightened uncertainties.

The Development Budget Coordination Committee has cited geopolitical tensions, including the conflict in the Middle East, as among the external risks to the economy. Natural disasters could also weigh on production, prices, and consumer activity.

On claims of political persecution, Castro said the impeachment case against Duterte is constitutionally sanctioned.

“Ang pagpapanagot ngayon sa Bise Presidente through an impeachment trial ay naaayon sa Konstitusyon (Holding the Vice President accountable now through an impeachment trial is in accordance with the Constitution),” Castro said.

“Hindi ito political persecution (This is not political persecution).”

-PNA/Darryl John Esguerra