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ADB trims 2025 Philippine growth forecast to 5%
The Asian Development Bank (ADB) has lowered its economic growth forecasts for the Philippines for both 2025 and 2026, but the country is still projected to be the second-fastest growing economy in Southeast Asia.
The ADB reduced its GDP growth forecast for the Philippines to 5% for 2025, down from a previous projection of 5.6%, and to 5.3% for 2026, a decrease from 5.7%.
These revised forecasts fall short of the Philippine government's targets of 5.5-6.5% for this year and 6-7% for 2026-2028.
The ADB cited weak infrastructure spending, influenced by investigations into publicly funded projects and the impact of natural hazards, as the primary reasons for the reduced growth outlook.
Infrastructure expenditure in the Philippines decreased by 10.7% from January to September compared to the same period last year.
The slowdown in infrastructure spending, exacerbated by adverse weather and more stringent fund releases to the Department of Public Works and Highways, contributed to a weaker-than-expected third-quarter GDP growth of 4%.
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News Sources
See how different news organizations are covering this story. Below are the original articles from various Philippine news sources that contributed to this summary.
The Asian Development Bank (ADB) has sharply cut its economic growth forecasts for the Philippines for 2025 and 2026 due to weak infrastructure spending amid corruption probes and natural disasters.
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The World Bank has lowered its economic growth forecasts for the Philippines from 2025 to 2027, citing domestic shocks including disasters and corruption issues related to flood control.
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The Organisation for Economic Co-operation and Development (OECD) has significantly reduced its Gross Domestic Product (GDP) growth forecasts for the Philippines, expecting it to miss government targets until 2027.
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The World Bank has lowered its economic growth forecast for the Philippines to 5.1% for the current year, down from a previous projection of 5.3%.
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The Philippine economy is projected by the Philippine Institute for Development Studies (PIDS) to grow by five percent in the fourth quarter of 2025, an improvement from the previous quarter's performance.
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