ADB cuts Philippine growth forecast to 6%

The Asian Development Bank (ADB) has revised its Philippine economic growth forecast for 2025 downward to 6%, down from a previous estimate of 6.2%. Despite this slight reduction, the economy is still expected to be one of the fastest-growing in Southeast Asia, second only to Vietnam and Cambodia.

The ADB attributes this projected growth to robust domestic demand, sustained public investment, and strong employment alongside remittance inflows. The bank also projects that inflation will remain stable at around 3% for both 2025 and 2026, a significant decrease from previous forecasts due to the anticipated impact of tighter monetary policies and steady global commodity prices.

ADB's country director Pavit Ramachandran highlighted the importance of continued infrastructure investments in driving economic momentum, although there is concern about potential tariff impacts following recent US policy changes under President Trump. The bank sees the Philippines' strong macroeconomic fundamentals as a buffer against these risks.