The government now expects the economy to grow between 3.5 percent and 4.5 percent in 2026, according to the Department of Economy, Planning and Development. The revised target, reported by Philstar Biz, reflects the anticipated impact of the Middle East conflict and lingering effects of the flood control controversy.
The Middle East conflict has raised uncertainty in global markets, affecting trade and investment flows. Officials noted that the ongoing tensions could disrupt supply chains and dampen external demand, prompting a more cautious outlook for the Philippine economy.
Domestically, the flood control controversy continues to weigh on public infrastructure spending and investor confidence. The Department stressed that resolving these issues is critical to achieving the lower end of the growth range, while favorable global conditions could push growth toward the upper end.