MANILA: The Asian Development Bank (ADB) significantly cut its growth forecasts for the Philippines to below 6 per cent, citing external headwinds that could weigh on investments.
The ADB trimmed its outlook for the country in 2025 to 5.6 per cent, from its old estimate of 6 per cent, according to the Manila-based lender’s flagship Asian Development Outlook report released Tuesday.
For 2026, the ADB slashed its forecast to 5.7 per cent from 6.1 per cent before.
While the revised 2025 prediction would settle near the lower limit of the government’s 5.5 to 6.5 per cent target, the ADB’s downgraded 2026 forecast would fall short of the official 6 to 7 per cent 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. - Philippine Daily Inquirer/ANN
