‘Fiscal tightening a drag on growth’In a report, Nomura said “fiscal tightening intensified at the start of the year” and is likely to “point to a further drag in near-term growth momentum,” particularly as the ongoing Middle East war adds downside risks. MANILA, Philippines — Aggressive fiscal tightening at the start of the year is emerging as a key drag on the Philippines’ near-term growth outlook, with Nomura Global Markets Research warning that weak government spending and rising external risks could weigh on economic momentum. In a report, Nomura said “fiscal tightening intensified at the start of the year” and is likely to “point to a further drag in near-term growth momentum,” particularly as the ongoing Middle East war adds downside risks. “While this swing is attributable to tax revenue growth remaining positive, as BTr has emphasized (though slowing sharply), we think the bigger driver was the sharp drop in spending growth,” the report said. This weak fiscal impulse comes at a critical time for the economy.

Source: Philippine Star March 23, 2026 23:32 UTC