ADB warns of sharper economic slowdown for Philippines in 2026

The Asian Development Bank (ADB) has further slashed its Philippine growth forecast for 2026 to 3.3 percent, below the government’s target, as the prolonged war in the Middle East drives up import costs and weighs on investments.

In its Asian Development Outlook (ADO) September 2026 report released on Wednesday, Sept. 23, the Manila-based multilateral lender cut its gross domestic product (GDP) growth forecast for its host country from the 3.8 percent projected in July.

The latest forecast is also below the Marcos Jr. administration’s already-lowered growth target of 3.5 to 4.5 percent for 2026.

The ADB said the Middle East war has hit the economy harder than previously expected, with weaker investments in the first half of the year and soaring prices of imported fuel and other vital commodities such as fertilizers.