Benise Balaoing

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

Article (news)

MMDA-NCAP

ABS-CBN News

MANILA (UPDATED/CORRECTED)— The Asian Development Bank and the International Monetary Fund have cut their growth outlook for the Philippines. The ADB said it forecasts the Philippine economy to grow 3.8 percent, down from 4.4 percent in <a href="https://www.abs-cbn.com/news/business/2026/4/10/adb-cuts-philippines-growth-outlook-due-to-mideast-war-1358" rel="noopener noreferrer" target="_blank">April</a>, as the impact of the Middle East crisis continues to ripple throughout the region.In its latest Asian Development Outlook, the ADB said it is lowering growth expectations for the Philippines because of delayed investments and weaker private consumption amid
higher commodity prices and climate-related risks.The multilateral lender noted that higher energy prices are also weighing on tourism in the Philippines. The ADB now expects Philippine inflation to hit 5.9 percent for the year, from its earlier forecast of 4 percent.The ADB also said higher fertilizer prices may drive rice prices upward.&quot;Simulations indicate that, in the most severe
scenario, farmgate prices in 2026 could rise by...nearly 20 percent in the Philippines,&quot; it said.The IMF, meanwhile, also lowered its growth forecast for the Philippines to 3.9 percent.<div><a href="https://www.abs-cbn.com/news/business/2026/7/1/philippines-now-an-upper-middle-income-country-2222" rel="noopener noreferrer" target="_blank">Philippines now an &#x27;upper-middle income&#x27; country</a></div>The Philippine economy grew <a href="https://www.abs-cbn.com/news/business/2026/5/7/gdp-growth-skids-to-2-8-percent-in-first-quarter-of-2026-1007" rel="noopener noreferrer" target="_blank">2.8 percent</a> in the first quarter of 2026 because of the lingering effects of the flood control controversy, delays in the release of funds for infrastructure spending, and the impact of the war in the Middle East.Philippine inflation has eased to <a href="https://www.abs-cbn.com/news/business/2026/7/7/inflation-eases-to-6-4-percent-in-june-as-fuel-prices-decline-0914" rel="noopener noreferrer" target="_blank">6.4 percent</a> in June, after climbing to 7.2 percent in May. The state statistics bureau, however, stressed that the Middle East conflict can still affect the country’s inflation going forward, as transportation costs still contribute substantially to the inflation number.

The Asian Development Bank cut its growth outlook for the Philippines to 3.8 percent.

The Asian Development Bank cut its growth outlook for the Philippines to 3.8 percent.

ADB, IMF cut growth outlooks for the Philippines

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ADB, IMF cut growth outlooks for the Philippines

Benise Balaoing,

ABS-CBN News

Published July 09, 2026 01:40 PM PHT

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Updated July 09, 2026 10:05 PM PHT

Read More:

philippine growth

economic growth

GDP

inflation

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