World Bank cuts PH economic growth forecast for 2025-2027

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.

The World Bank's GDP growth forecast for the Philippines has been adjusted to 5.1% for the current year, down from the previously projected 5.3%.

For 2026, the forecast was decreased to 5.3% from 5.4%, and for 2027, it was lowered to 5.4% from 5.5%.

These revised projections fall short of the Philippine government's own growth targets.

The slowdown is attributed to lower domestic investment, weak business confidence, a decline in foreign direct investment, softer construction and manufacturing activity, and the impact of natural disasters on private consumption.

World Bank Senior Economist Jaffar Al-Rikabi described the Philippine economic outlook as a "Nike swoosh pattern," indicating a dip in 2025 followed by a gradual recovery in 2026 and 2027.