Daven Tamayo

ADB, European chamber see Philippine economic recovery in 2026

The Ortigas skyline seen from the junction in Pasig City. Mark Demayo, ABS-CBN News

Article (news)

Ortigas Skyline

Jekki Pascual

ABS-CBN News

MANILA —The Asian Development Bank (ADB) and the European Chamber of Commerce in the Philippines (ECCP) are confident of an economic recovery for the Philippines in 2026. The Philippines is expected to hit a full year gross domestic product (GDP) of below government target of between 5.5 to 6.5 percent. Average GDP for the first nine months is 5 percent largely attributed to the reduced consumer and government spending brought about by the flood control corruption issue. ADB and many global institutions have also lowered projections for the country.At a forum organized by the ECCP, ADB Philippines Country Director Andrew Jeffries said recovery will happen, but reforms must continue in government processes.“It&#x27;s gonna recover, the question is when. And we think it&#x27;s gonna recover faster than that. We predict and I think it&#x27;s consistent with what we&#x27;ve seen from others today that next year there will be growth compared to this year,” said Jeffries.He urged the government to continue with the reforms and to also properly implement the new laws that were passed recently like the CREATE MORE Act, Land Lease Act, and the Enhanced Fiscal Regime for Large-Scale Mining Act.“Take the concern seriously and push forward with some of the changes and reforms and improvements that have been talked about. I think just following through on that would be the most important thing to reverse segments of investors where sentiment has gone down,” Jeffries added.ECCP also released its 2025 Business Sentiment Survey Report which showed optimism in the Philippines for European companies. The report revealed that 70.3 percent of respondents expect increase in trade and investment in the country in the next 12 months.65.7 percent of respondents said they plan to expand their presence in the country over the next four years while nearly 20 percent said they will maintain the current scale, and over 11 percent said they will consolidate.“It may look surprising that our members and some companies have high optimism especially with these events going on around us… We see this as the reflection of the country’s strong fundamentals,” said Austin Sy of ECCP.However, the report also showed many European investors want improvement in the Philippines. 34.1 percent of respondents said the Bureau of Customs procedures for trade-engaged companies is overly burdensome, while 47.8 percent said it’s acceptable but could be improved.Sy added, “Targeted reforms are needed to attract new investments and retain existing capital, ensuring sustainable economic expansion.”Officials are also hopeful of the implementation of the free trade agreement between the Philippines and the European Union which is expected to be signed next year.

The Asian Development Bank (ADB) and many European companies are confident of an economic recovery for the Philippines in 2026.

The Asian Development Bank (ADB) and many European companies are confident of an economic recovery for the Philippines in 2026.