By Anna Leah Gonzales | Philippine News Agency
The Asian Development Bank (ADB) said Tuesday the Philippine economy is expected to remain resilient despite global headwinds.
In its Asian Development Outlook September 2025 report, the ADB said Philippine economic growth is projected to settle at 5.6 percent this year and slightly accelerate to 5.7 percent in 2026.
While the 2026 forecast was down from the 5.8 percent earlier projection, the ADB said the Philippines would continue to be a bright spot in Southeast Asia “with the second highest GDP (gross domestic product) expansion in the region.”
The ADB said the lower growth projection was due to more challenging external conditions, including increased global policy uncertainty and a slowdown in growth in major advanced economies.
ADB country director for the Philippines Andrew Jeffries said in a statement, “The Philippines’ growth outlook remains resilient amid a global environment of shifting trade and investment policies and heightened geopolitical uncertainties.”
“Though these uncertainties pose increased risk, we see strong domestic demand anchoring growth, with sustained investments and an accommodative monetary policy supporting the economy’s expansion.”
The ADB said domestic demand would continue to drive growth, supported by low inflation and accommodative monetary policy. Sustained public infrastructure investment will also continue to boost growth. On the supply side, services and industry will remain the main drivers of growth.
The ADB said, “Services, which account for around 60% of GDP and employment, will continue to expand with trade, transportation, professional and business services among key contributors.”
Inflation, meanwhile, is expected to continue to remain within the government’s target, settling at 1.8 percent for this year and 3 percent for 2026. “Inflation is expected to remain subdued, supported by lower global commodity prices.”
Meanwhile, it said adverse weather conditions and climate shocks could put pressure on commodity prices.
Other downside risks to the growth outlook include external headwinds from heightened uncertainty, further shifts in global economic policies, and rising trade barriers, which could affect market sentiment and hinder economic growth. (PNA)
