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The Pasig skyline as seen from the Metro Manila Development Authority (MMDA) Command Center  in Pasig City on July 7, 2025.  Jonathan Cellona, ABS-CBN News

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Skyline

Jekki Pascual

ABS-CBN News

MANILA — The ASEAN+3 Macroeconomic Research Office (AMRO) has maintained its growth forecast for the Philippines this year, but revised upwards the growth outlook for the region.At the press conference for the ASEAN+3 Regional Economic Outlook Update, economists said the Philippines gross domestic product (GDP) outlook remains at 5.6 percent for this year and 5.5 percent for 2026. The country is still the second fastest growing economy in the region, only next to Vietnam. The GDP outlook for ASEAN+3, which includes China, Korea, and Japan has been changed from 3.8 percent to 4.1 percent for 2025. Outlook for 2026 also revised from 3.6 percent to 3.8 percent.AMRO Chief Economist Dong He attributed the growth to better first-half performance and the easing of market pressures following the US tariff announcement.“Exporters&#x27; anticipation of higher tariffs has front-loaded their shipments. Globally, semiconductor-related exports have been growing strongly,” he added.He also mentioned that the US tariff issue has two effects- the direct effect which is on prices, and the income effect, which could boost developed nations’ economy which in turn will get more goods from the region.“If the major economies can still manage to grow despite all the tariffs, then demand for other goods and services, not necessarily covered by these tariffs, would be reasonably ok. So far in that sense ,the global economy has held up well,” he said.For the Philippines, the outlook remains positive, citing a strong domestic market and rising money sent from abroad.“We still expect that consumption is going to grow quite steadily, supported by the strong labor market, lower inflation, and also the still robust remittances as well,” said Runchana Ponsaparn, Group Head and Lead Economist at AMRO.She however, said the ongoing flood control corruption issue may potentially affect future growth. They will monitor developments on the issue.“In terms of the scandal, we would have to see to what extent is actually going to affect the economy,” she said.Dong He added that the Philippines should beef up investments as well as improve infrastructure because climate shocks and floods are a big threat.“The challenge really is, while maintaining short-term stability, how do we lift the medium-term growth to higher levels. Investment should really be much higher to underpin the productive capacity in the medium term,” said He.Overall, AMRO said the region is positioned to navigate global headwinds with good policies and robust banking and financial systems. With the easing of inflation, it added that central banks can maintain an accommodative monetary policy to support growth.

AMRO has maintained its growth forecast for the Philippines this year, but revised upwards the growth outlook for the region.

AMRO has maintained its growth forecast for the Philippines this year, but revised upwards the growth outlook for the region.

AMRO raises ASEAN+3 growth outlook, maintains PH outlook

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AMRO raises ASEAN+3 growth outlook, maintains PH outlook

Jekki Pascual,

ABS-CBN News

Published Oct 09, 2025 10:25 PM PHT

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ASEAN

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flood control project

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