Inquirer
GDP growth seen returning to target in 2027—BSP
The Bangko Sentral ng Pilipinas (BSP) forecasts economic growth to be slightly below government targets for 2025 and 2026, attributing this to moderating demand and weakened business confidence.
Key factors contributing to this slowdown include typhoon damage to the agriculture sector, reduced construction activity, and softer demand for services.
Concerns regarding governance and the implementation of infrastructure projects are also impacting the economic outlook, potentially delaying spending and discouraging investment.
The Monetary Board has already responded to the softer growth path by cutting benchmark policy rates by 25 basis points in its October 9 meeting.
The BSP anticipates that economic growth will return within the target range by 2027.
This projection means the Philippines may miss its growth targets for a fourth straight year, having fallen short in 2023 and 2024.
The government is aspiring for growth of between 5.5 and 6.5 percent for 2025 and a faster 6 to 7 percent for 2026, targets that are now unlikely to be met.
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