Pampanga Business Leaders Urge Government Action After GDP Growth Slows to 4.7%
The Pampanga Chamber of Commerce and Industry, Inc. (PamCham) has issued a strong appeal to the national government to restore public trust and enhance governance efficiency following the release of concerning economic data. The Philippine GDP growth rate for 2025 dropped significantly to 4.7%, down from the previous year's 5.7% performance, marking a substantial economic deceleration that has raised alarms across the business community.
Concerns Over Regional Competitiveness and Economic Management
In an official public statement, PamCham expressed deep concern about what they described as "weaker-than-anticipated performance" that now places the Philippines behind its regional counterparts in economic growth metrics. The business organization emphasized that this development highlights pressing challenges in both economic management and public-sector efficiency that require immediate attention from government leaders.
"This highlights the pressing challenges in economic management and public-sector efficiency," PamCham stated in their comprehensive assessment of the economic situation.
Infrastructure Spending Decline Following Corruption Scandal
According to PamCham's analysis, a key contributor to the economic slowdown has been the sharp decline in public construction spending. This reduction followed a major corruption scandal involving flood-control projects that prompted extensive investigations into irregularities within government agencies.
While acknowledging that investigations into irregularities were necessary for accountability, PamCham noted that the aftermath generated widespread hesitation within government agencies, particularly affecting the Department of Public Works and Highways (DPWH). This climate of caution resulted in what effectively became a freeze on project approvals and payments across multiple infrastructure initiatives.
"This disruption affected not only flood-control initiatives but also key infrastructure programs vital to economic activity, regional mobility, and national competitiveness," the PamCham statement explained in detail.
Business Leaders Call for Decisive Leadership and Transparency
"As the Philippines enters 2026, PamCham calls for a stronger leadership that is decisive, transparent, and executes strategic action to restore confidence, revive public spending efficiency, and strengthen economic momentum," the chamber added in their forward-looking recommendations.
Lawyer Paul Yusi, PamCham president, asserted the critical importance of restoring trust and consistency in public processes. "The business community needs predictability and confidence in government actions. While accountability is essential, it must be balanced with continuity in service delivery. We encourage the government to adopt clear corrective measures that both uphold integrity and keep the economy moving," Yusi emphasized during the chamber's announcement.
Human and Economic Costs of Government Paralysis
Meanwhile, PamCham Chair Jim Jimenez highlighted the broader implications of these governance disruptions for Filipino workers and businesses across the nation. "Delays in salaries, halted projects, and slowed provincial activity have real human and economic costs. The government must take a proactive stance to ensure that the burdens of governance challenges are not disproportionately carried by ordinary citizens and small enterprises," Jimenez stated with concern.
He further elaborated that the paralysis in government processes has caused multiple negative effects:
- Significant delays in construction projects nationwide
- Stalled economic activity in many provinces
- Postponed salary releases for affected workers
"Despite assurances from economic officials that these measures were intended to correct systemic weaknesses and rebuild institutional integrity, the overall economic impact has been substantial, placing additional strain on Filipino workers, contractors, families, and local businesses," he added, providing context to the chamber's concerns.
Infrastructure as Economic Backbone
Lawyer Ryan Tan, PamCham director-in-charge of the Infrastructure Development Committee, emphasized the business sector's growing concerns about the infrastructure situation. "Infrastructure is the backbone of regional and national competitiveness. When public construction stalls, local economies suffer. We urge the government to act swiftly, ensure that critical projects move forward, and eliminate the climate of uncertainty that is hindering progress," Tan concluded, underscoring the urgency of the matter for economic recovery and future growth prospects.
