ABS-CBN
IMF cuts PH growth forecast, monitors flood control issue
The International Monetary Fund (IMF) has lowered its economic growth projections for the Philippines in 2025 and 2026 due to a slower-than-anticipated first-half performance and external economic uncertainties.
The IMF now anticipates the Philippines' GDP to grow by 5.4% in 2025 and projects 5.7% growth for 2026.
IMF mission chief Elif Arbatli Saxegaard attributed the downward revision to the economy's performance in the first half of the year, which fell short of the government's target range.
Saxegaard explained that increased tariffs on Philippine exports to the US and anticipated reductions in government spending are expected to negatively impact exports, investment, and growth.
More frequent and intense climate shocks are also identified as a domestic downside risk that could cause macroeconomic losses.
The ongoing flood control corruption controversy may also impact investor confidence, though this is not yet factored into the IMF's forecast.
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The World Bank maintained its Gross Domestic Product (GDP) growth forecasts for the Philippines at 5.3% for 2025 and 5.4% for 2026, remaining unchanged from June.
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The Asian Development Bank (ADB) maintained its 2025 GDP growth forecast for the Philippines at 5.6%, citing strong domestic demand and low inflation.
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