The International Monetary Fund and the Asian Development Bank have slashed their growth forecasts for the Philippines for the next two years, as reported by Philstar Biz.
The downward revision was attributed to weaker-than-expected first-quarter economic performance and the larger-than-anticipated impact of the Middle East conflict on domestic prices and economic activity. Both lenders now expect the Philippine economy to expand at a slower pace in 2026 and 2027.
The lower outlook raises concerns about the country's ability to meet its medium-term growth targets, as persistent inflation and geopolitical risks continue to weigh on consumption and investment.