Philippines Cuts 2026 Growth Outlook to 3.5-4.5% Amid Governance Issues and Geopolitical Risks

According to the Development Budget Coordination Committee (DBCC), the Philippines has downgraded its 2026 economic growth forecast to 3.5-4.5% from the prior target of 5-6%. The revised outlook reflects heightened domestic and external uncertainties, including governance-related issues, Middle East geopolitical tensions, and risks from elevated inflation and oil prices. The DBCC also projects inflation to average 6-7% in 2026 before easing to 4-5% in 2027, while flagging potential disruptions from El Niño in the second half of the year.
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