Philippine economy set for 6.1% growth in 2025, 6.2% in 2026

The United Nations Department of Economic and Social Affairs projects Philippine economic growth to accelerate to 6.1 percent in 2025 and further increase to 6.2 percent in 2026, making the country one of the strongest performers among Southeast Asian economies.

Economic Affairs Officer Zhenqian Huang highlighted robust domestic demand, ongoing public investments, recent investment policy reforms, a vibrant labor market, and a growing services sector as key drivers of this growth.

The Bangko Sentral ng Pilipinas (BSP) has eased monetary policy with interest rate cuts, supporting near-term domestic demand amid lower inflation.

Improved government revenue collection has enabled sustained public spending on infrastructure, which helps unlock long-term growth potential, while robust remittance flows will boost household spending.

However, the report also notes downside risks such as increasing trade tensions, higher tariffs, exchange rate volatility due to current account deficits, and vulnerability to climate change with frequent natural disasters.