AMRO cuts PH growth forecasts for 2026, 2027
The Asean+3 Macroeconomic Research Office has lowered its economic growth forecasts for the Philippines for 2026 and 2027. The revision is attributed to weaker private consumption, reduced public investment, and persistent inflationary pressures.
Why it matters
The downgrade signals potential economic instability in the Philippines, highlighting the need for government intervention to stimulate investment and manage inflation.
THE Asean+3 Macroeconomic Research Office (AMRO) on Thursday slashed its Philippine economic growth forecast for 2026 to 3.4 percent from 4.1 percent, citing weaker private consumption and subdued investment.A rebound to 4.8 percent was projected for 2027, but this is also lower than the Singapore-based international organization's previous forecast of 5.5 percent.The latest revisions fall below the government's downwardly revised 3.5- to 4.5-percent target for 2026 and the 5.0-6.0 percent for 2027 to 2030."With growth expected to weaken and inflation to remain elevated this year, a timely and balanced response is needed to prevent the adverse effects of external and domestic headwinds from becoming persistent," AMRO said in a statement issued following the end of its annual consultation visit to the Philippines."Sustaining resilience will require swift action to revive public investment and contain second-round inflation effects, while helping the economy adapt to structural challenges," it added.Jinho Choi, AMRO lead economist…
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