The Association of Southeast Asian Nations Plus 3 Macroeconomic Research Office has downgraded its growth forecasts for the Philippines for this year and next, as it expects higher inflation from the prolonged Middle East conflict to dampen economic activity, according to Philstar Biz .
AMRO now sees the Philippine economy growing at a slower pace than previously estimated, reflecting headwinds from elevated global oil prices and supply chain disruptions linked to the conflict. The revised projections underscore the vulnerability of the import-dependent economy to external shocks.
The downgrade adds to cautious sentiment among investors and policymakers, though the government has maintained its own growth targets for now. AMRO's assessment is part of its regular surveillance of regional economies and may prompt further adjustments in fiscal and monetary planning.