The Asian Development Bank (ADB) significantly cut its growth forecasts for the Philippines to below 6 percent, citing external headwinds that could weigh on investments. The ADB trimmed its outlook for the country in 2025 to 5.6 percent, from its old estimate of 6 percent, according to the Manila-based lender’s flagship Asian Development Outlook report released Tuesday.
For 2026, the ADB slashed its forecast to 5.7 percent from 6.1 percent before.
While the revised 2025 prediction would settle near the lower limit of the government’s 5.5 to 6.5 percent target, the ADB’s downgraded 2026 forecast would fall short of the official 6 to 7 percent goal for next year.
‘In the Philippines, forecasts are lowered as global trade uncertainty dampens investor sentiment,’ the Bank said.
‘However, low inflation and an accommodative monetary policy are expected to support domestic demand in the near term,’ it added.