The Philippines recorded sharp cuts in government spending in January, reflecting a deepening of fiscal tightening amid the recent corruption controversy, Nomura said in a recent note.
The decline, caused by last year's lack of pre-procurement, is likely to keep government spending low in the coming months.
Analysts said weak spending and a GDP drop in the fourth quarter of 2025 suggest a slow economic recovery in the near term.
Nomura said the trend highlights the challenge of balancing fiscal discipline with growth support.
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