Byline: By Dong My, Philippine Daily Review | November 5, 2025
Manila, Philippines — The year 2025 has marked a painful downturn for the Philippine economy, as rising prices, job losses, and corruption scandals have shaken the confidence of both citizens and investors. What was once an emerging economy of promise now faces its toughest challenge in over a decade.
Everyday Struggle Amid Soaring Costs
The price of food, fuel, and public transportation has surged beyond what many Filipino families can afford. Inflation hit 9.8%, its highest in more than 15 years, forcing millions to tighten their budgets.
At a public market in Quezon City, Maria Dela Cruz, a mother of three, clutched her small bag of rice. “Before, ₱500 could feed us for two days. Now, it’s barely enough for one,” she said tearfully. “We work harder but earn less. Life has never been this heavy.”
Collapse of Trust in the System
Economists say the crisis is not just financial — it’s moral. Allegations of ghost flood control projects and missing infrastructure funds have eroded trust in the administration. Investigations revealed billions of pesos allocated to projects that were either abandoned, overpaid, or never built.
Opposition lawmakers and civic groups demand accountability, claiming corruption has drained national resources meant to fight poverty and inflation. “People are suffering while officials profit from fake projects,” said Senator Risa Hontiveros. “This is not just economic failure — it’s betrayal.”
Peso Weakens, Jobs Vanish
The Philippine peso continues to weaken, hitting ₱63 to the US dollar, the lowest in over 20 years. This has pushed import prices up, affecting basic goods like fuel, cooking oil, and medicine.
Thousands have lost their jobs in manufacturing, construction, and services, forcing many to seek work abroad once again. The unemployment rate stands at 8.7%, with underemployment at 16%, according to the Department of Labor and Employment.
Investors Turn Away
Foreign investments have sharply declined as confidence in government transparency weakens. Several multinational companies have paused projects in Metro Manila and Cebu, citing “policy inconsistency and poor infrastructure performance.”
Economist Dr. Arsenio Salazar of the University of the Philippines warned, “The Philippines is at a crossroads. Without restoring credibility and reforming public spending, economic recovery will be slow and painful.”
Government’s Reassurance
Despite public anger, Malacañang maintains that the situation is “manageable.” In a recent briefing, the administration announced stimulus programs for low-income families, increased agricultural funding, and plans to attract digital investors.
However, many Filipinos remain doubtful. The streets of Manila have seen growing protests calling for transparency and reform. Citizens, labor unions, and students demand a full audit of infrastructure spending and real action to ease the burden of inflation.
A Nation Waiting for Recovery
As 2025 nears its end, uncertainty hangs heavy over the country. The economy’s fall has not only hit the nation’s finances but also the people’s spirit. For millions of Filipinos, hope remains — but it grows dimmer each day the crisis deepens.
“The people deserve better,” said Maricel Santos, a teacher from Quezon City. “We’ve survived storms, typhoons, and pandemics. But this time, it feels like the storm is our own government.”
