The GDP figure came in well below a June projection of 5.5-6.5%, which was already a downgrade that took into consideration the imposition of US tariffs and “global uncertainties”.

The full-year figure came alongside fourth-quarter numbers that plummeted to 3.0 from 5.3 a year ago – the second-straight quarter where growth targets were missed.

Economic planning secretary Arsenio Balisacan told reporters Thursday that “weather and climate-related disruptions” had taken a toll, with missed work days and school closures contributing to depressed domestic demand.

A spiralling scandal over bogus infrastructure projects had also weighed heavily on short-term growth, he said.

“Admittedly, the flood corruption probe scandal also weighed on business and consumer confidence,” Balisacan said.

Construction spending has cratered since a scandal over so-called ghost flood control projects erupted after President Ferdinand Marcos made it the centrepiece of a July speech.

Scores of officials, lawmakers and construction firm owners have since been implicated in fraud believed to have cost taxpayers billions of dollars.

On Thursday, Balisacan predicted that reforms now under way would lead to a bounce back in 2026.

“The resulting measures and governance reforms are necessary to strengthen accountability, improve project quality, ensure better value for scarce public resources, and build our capacity for faster and more sustainable growth in the years ahead,” Balisacan said.