Benise Balaoing

Skyline and buildings in Quezon City on January 11, 2023. Mark Demayo, ABS-CBN News

Article (news)

ADB slashes Philippine 2025 growth outlook to 5.6 pct

ABS-CBN News

<p>MANILA (UPDATE) — The Asian Development Bank (ADB) on Wednesday slashed the Philippines&#x27; 2025 economic growth forecast to 5.6 percent.</p><p>The ADB earlier said in April that it expects the Philippine economy to expand by 6 percent this year.</p><div><a href="https://www.abs-cbn.com/news/business/2025/4/9/ph-still-one-of-southeast-asia-s-fastest-growing-economies-in-2025-adb-1100" rel="noopener noreferrer" target="_blank">PH still one of Southeast Asia&#x27;s fastest-growing economies in 2025, ADB says before Trump tariffs</a></div><p>In its latest Asian Development Outlook, the ADB said it revised its growth outlook for the Philippines downwards because of external headwinds. </p><p>The multilateral lender noted that the gross domestic product (GDP) grew slower at <a href="https://www.abs-cbn.com/news/business/2025/5/8/philippine-gdp-grows-5-4-percent-in-first-quarter-of-2025-1005" rel="noopener noreferrer" target="_blank">5.4 percent</a> in the first quarter.</p><p>&quot;Domestic demand grew 6.7 percent, supported by easing inflation and monetary policy. However, net exports dragged on growth as brisk imports outpaced exports,&quot; the ADB said.</p><p>The organization also noted that business confidence softened amid heightened global policy uncertainties.</p><div><a href="https://www.abs-cbn.com/news/business/2025/6/6/consumers-pessimistic-in-first-quarter-of-2025-bsp-1658" rel="noopener noreferrer" target="_blank">Consumers pessimistic in first quarter of 2025: BSP</a></div><div><a href="https://www.abs-cbn.com/news/business/2025/1/28/ceos-worry-over-inflation-but-still-eye-growth-this-year-1039" rel="noopener noreferrer" target="_blank">CEOs worry about inflation, but still eye growth this year</a></div><p>The ADB stressed, however, that the Philippines is not alone: it also cut its growth outlook for developing Asia to 4.7 percent, expecting higher tariffs and global trade uncertainty to slow the region&#x27;s growth momentum.</p><p>It also noted that Southeast Asia will likely be hardest hit by worsened trade conditions and uncertainty, with the subregion’s economies expanding by only 4.2 percent this year.</p><p>Meanwhile, the ASEAN+3 Macro-Economic Research Office (AMRO) also cut its Philippine economic growth outlook to 5.6 percent from its <a href="https://www.abs-cbn.com/news/business/2025/1/21/asean-3-seen-to-grow-by-4-2-percent-in-2025-amro-1323" rel="noopener noreferrer" target="_blank">earlier projection</a> of 6.3 percent.</p><p>AMRO said ASEAN+3 [ASEAN + China, Japan, Korea] will also grow slower at 3.8 percent in 2025, reflecting the impact of higher tariffs and a broader global demand slowdown.</p><p>“Overall, however, continued strength in domestic demand and sustained external demand for electronics and tourism, is expected to continue to underpin regional growth,” AMRO said.</p><p>The Philippines has lowered its growth target for the year to 5.5 to 6.5 percent.</p><div><a href="https://www.abs-cbn.com/news/business/2025/6/26/philippines-lowers-growth-target-range-for-2025-citing-rising-uncertainties-1839" rel="noopener noreferrer" target="_blank">Philippines lowers growth target range for 2025 citing rising uncertainties; P6.79-trillion budget eyed for 2026</a></div><p>The United States reduced tariffs imposed against the Philippines by 1 percentage point after Manila agreed to open its market to American-made cars with zero trade duties.</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/XEnXroRTUcQ?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div>

<p>The ADB downgarded its economic growth outlook for the Philippines to 5.6% from 6 percent.</p>

The ADB downgarded its economic growth outlook for the Philippines to 5.6% from 6 percent.