Benise Balaoing

Makati City skyline on February 20, 2024. Mark Demayo, ABS-CBN News

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Makati Skyline

Jekki Pascual

ABS-CBN News

MANILA -- The Asian Development Bank (ADB) is keeping its Philippine growth outlook at 5.6 percent, at it sees strong domestic demand and low inflation driving the economy forward.Officials, however, admitted that this does not yet factor in the controversial flood control projects.<div><a href="https://www.abs-cbn.com/news/business/2025/7/23/adb-slashes-philippine-2025-growth-outlook-to-5-6-pct-1147" rel="noopener noreferrer" target="_blank">ADB slashes Philippine 2025 growth outlook to 5.6 pct</a></div>“We didn’t see a reason, at this point in time, to reduce those GDP projections due to that issue,” said ADB country director for the Philippines Andrew Jeffries.“But it’s certainly a heightened risk and between now and our December update, there may be more quantifiable data available that may alter our projections,” he said.“That’s certainly a risk to economic projections going forward,” he added. Jeffries said ADB continues to monitor this development and he assured stakeholders that ADB has strict processes when it comes to funding infrastructure projects for all countries.“Obviously corruption has broad impacts to economic growth in general and investment sentiments. So we’re monitoring that and how that may be affected going forward,” he said.He also revealed that ADB has an ongoing flood control project in the Philippines, but that it is being strictly checked. He added they are continuously in talks with the Philippine government on various projects and on ways to have transparent bidding and procurement systems.“We only have one ongoing flood protection project. It involves 2 river basins in Mindanao and one in Northern Luzon. That project, as I said, go through a very careful monitoring process,” he added.Jeffries said the country&#x27;s economy remained resilient despite changing global trade and investment policies and geopolitical uncertainties. “Though these uncertainties pose increased risk, we see strong domestic demand anchoring growth, with sustained investments and an accommodative monetary policy supporting the economy’s expansion,&quot; Jeffries said. ADB sees inflation settling at 1.8 percent this year, below the government&#x27;s target range of 2 to 4 percent, due to slower food price hikes. The ADB said this was partly because the country has more rice supply. It also noted that commodity prices have slowed globally.  The multilateral lender, however, noted that bad weather and climate shocks could put pressure on commodity prices.<div> </div><div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1759198346901ADB.png" style="width:960px" class="fr-fic fr-dib"/></div><div> </div>As for developing Asia, the ADB said it expects the region&#x27;s economy to grow by 4.8 percent this year, as it expects higher United States tariffs to weigh on the region&#x27;s growth. &quot;Amid the new global trade environment, it’s crucial for governments to continue promoting sound macroeconomic management, openness, and further regional integration,&quot; said ADB chief economist Albert Park.ADB country director for the Philippines Andrew Jeffries said the country&#x27;s economy remained resilient despite changing global trade and investment policies and geopolitical uncertainties.“Though these uncertainties pose increased risk, we see strong domestic demand anchoring growth, with sustained investments and an accommodative monetary policy supporting the economy’s expansion,&quot; Jeffries said.ADB sees inflation settling at 1.8 percent this year, below the government&#x27;s target range of 2 to 4 percent, due to slower food price hikes.The ADB said this was partly because the country has more rice supply. It also noted that commodity prices have slowed globally. The multilateral lender, however, noted that bad weather and climate shocks could put pressure on commodity prices.

The ADB is keeping its Philippine growth outlook at 5.6 percent, at it sees strong domestic demand and low inflation driving the economy forward.

The ADB is keeping its Philippine growth outlook at 5.6 percent, at it sees strong domestic demand and low inflation driving the economy forward.

ADB keeps PH growth outlook at 5.6 pct, but adds flood projects corruption to weigh

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ADB keeps PH growth outlook at 5.6 pct, but adds flood projects corruption to weigh

Benise Balaoing,

Jekki Pascual,

ABS-CBN News

Published Sep 30, 2025 11:53 AM PHT

|

Updated Sep 30, 2025 02:42 PM PHT

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ADB

Philippines

economy

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