The World Bank on Tuesday maintained its Philippine growth forecasts for 2025 and 2026, saying structural reforms and strong domestic demand would support expansion.
In its East Asia and Pacific Economic Update for October, the multilateral lender said the Philippine economy is projected to grow by 5.3% this year and 5.4% in 2026, outpacing China, Indonesia, Malaysia, and Thailand.
The World Bank said the Philippines will likely post slightly higher growth in 2026, underpinned by domestic demand and a modest global recovery that could offset the effects of higher U.S. tariffs.
“(The) Philippines will benefit from robust domestic demand, supported by easing inflation, lower interest rates, and strong labor markets. Growth will also be sustained by public infrastructure investment exceeding 5 percent of GDP and private investment spurred by the reforms,” it said.
The lender said recent policy changes are expected to boost investment and productivity by opening key sectors such as logistics, telecommunications, and renewable energy to greater competition.
It also cited the government’s new Enterprise-Based Education and Training framework, aimed at strengthening the labor force through reskilling and upskilling initiatives.
“Sustaining this momentum will require effective implementation of these reforms, complemented by efforts to improve the business environment (it takes 106 days to register a foreign firm) and a strong commitment to fiscal consolidation to safeguard the fiscal space needed to maintain infrastructure investment without compromising macroeconomic stability,” the World Bank said.
