WB affirms 5.3% – 5.5% growth outlook for PH in 2025-2027
The World Bank has affirmed its growth outlook for the Philippines for 2025 to 2027 at rates below the government’s growth assumptions of at least 6 percent over the medium-term.
The Washington-based agency’s Global Economic Prospects report released late Tuesday Manila time showed the World Bank projects the Philippine economy to grow by 5.3 percent this year and 5.4 percent next year. These were the same forecast rates the bank published in its East Asia and the Pacific Economic Update released in April this year.
For 2027, the multilateral agency estimates 5.5 percent growth for the Philippines, the same as its projection in its Macro Poverty Outlook also released in April.
The projections for 2025 to 2027 are below the government’s growth assumption for the medium-term of 6 to 8 percent, as well as last year’s growth rate of 5.7 percent.
The World Bank did not provide an explanation for its forecasts for the Philippines in its latest global report.
Still, the Philippines is expected to post the second fastest growth among Asean economies, with only Vietnam seen expanding at an even faster pace during the three-year period.
According to the World Bank’s Macro Poverty Outlook published in April, growth will decelerate this year on the back of a slowdown in global activity.
It said heightened trade policy uncertainty and its total impact on global growth represents the main downside risk.
“Trade policy uncertainty may hinder exports and manufacturing. Yet, growth is still forecast to be among the fastest in the region over the forecast horizon, reflecting the positive outlook on private domestic demand,” the April report said.
“Domestic activity will benefit from low and stable inflation, easing monetary policy, and a healthy labor market that will boost private consumption and services. Meanwhile, investment growth will remain anchored on public infrastructure and the implementation of reforms that liberalized investment in key sectors,” it added.
