The World Bank (WB) recognizes a Philip’s gradual recoverypines in 2026 and 2027, after growth He dropped this year because of internal weaknessConsumption and lazy use, combined with a corruption scandal and natural disaster thread.
In its latest Philippines update released on Tuesday, the multilateral lender cut its Philippine gross domestic product (GDP) growth forecast to 5.1% This year from 5.3% in its June report.
In 2026, it lowered its forecast for Philippine GDP growth to 5.3% from 5.4% previously.
The World Bank also cut its forecast for Philippine GDP growth in 2027 to 5.4% from 5.5% previously.
These latest projections are below the government’s growth target of 5.5-6.5% for this year and the 6-7% target for 2026 to 2028.
“Borrowing from Torsten Slok, the chief economist at Apollo (management), it is the venosh pattern of nike. He describes our fullness in the Philippines as 2026 to 2027,” said the global economic economist in a short time.
He noted the average growth of the Philippines over 2025 to 2027 will be lower than 2024 when the GDP expanded by 5.7%.
“In 2025 … growth is largely driven by domestic factors. In general, low construction activity and poor demand growth,” he said.
The Philippine economy expanded by a weak 4%
Mr. Al-Rikabi also noted the fall in planned investment and private consumption due to the high number of natural disasters that hit the Philippines this year.
“But in 2026 to 2027, we think it’s possible that external factors will have more weight on growth, with more demand for exports,” said Mr Al-Rikabi.
The US has imposed a 19% tariff on most goods from the Philippines starting in August, to pull export permits.
The World Bank said the growth of the Philippine economy will pick up in 2026 and 2027, with the recovery of strong domestic stocks.
“Private consumption is expected to be strengthened as inflation remains low, employment remains strong, and monetary tightening lowers interest rates, making it easier for businesses and households to borrow,” the report said.
According to the World Bank, private consumption, which accounts for more than 70% of the economy, is expected to increase by 4.8% this year, decreasing from 4.9% in 2026 and 5.4% in 2027.
The World Bank said investment is likely to recover as public infrastructure recovers, while recent reforms to telecommunications, transport, skills and renewable energy improve the business climate.
The Multilateral Lender also expects a drop in headlines to an average of 1.8% this year, describing the pace as “very moderate” and a key source of strength. This forecast was higher than the Bangko Sentral ng Pilipinas’ (BSP) 1.7% Projection for 2025 and the 1.6% average recorded in the first 11 months.
‘Corruption is unacceptable’
As the Philippine economy will see a gradual recovery in For the next two years, Mr. Al-Rikabi noted the risks were focused on the ground, “” and prominent domestic drivers.
“There is an ongoing challenge of the destruction of ideas that are close to the threat of governance. This may, if it continues, increase the killing of public money. It can delay raising investment money,” he said.
The World Bank Economist Economist also noted that there may be a delay in financial and structural reforms within the current domestic environment, “which would slow consolidation and increase growth in the medium term.”
The corruption scandal involving the anammon flood control projects has already sparked protests, reduced economic activity, and movement of goods.The confidence of the country in the country.
“From the World Bank’s point of view, corruption is unacceptable,” World Bank Country Director for the Philippines, Malaysia, and Brune Zafer Mustafaoğlu.
“The World Bank considers it harmful to the country of any country and has been fighting corruption in all the member countries in which we work,” he added.
Mr. Mustafaoğlu said the Philippine government can take this opportunity to increase transparency and modernize the budget execution system “which can really support the growth of the economy (and) can increase the growth of the economy for a long time,” he said.
Mr. Al-Rikabi said it is important for the Philippine government to double down on management and institutional reform. The government should also continue with fiscal reforms to ensure that “fiscal consolidation continues in a credible manner that does not distort long-term growth.”
And Mr Al-Rikabi said severe weather events are always a threat to the Philippines, because they can disrupt food supplies and raise prices.
In external risks, the World Bank has charged policy uncertainty, which can reduce confidence in trade and investment, disrupt the financial market adjustment, and weak growth in key partner countries.
He also characterized that as an investment in artificial intelligence In general, major economies can face sharp targeting, which would target exports and industries.
Mr. Al-Rikabi said that the Government should ensure that the structural reforms, which had opened up other areas for foreign investment, were carried out successfully.
High Top Status
At the time, Mr. Al-Rikabi said the Philippines is full of country Income (GNI) per capita was able to reach a country with no middle income (IMIC) in 2025.
“Our 2025 projection already means that the Philippines will reach in terms of GNI per capita the IMIC limit this year,” he said.
According to the World Bank Final Income Classification, the Philippines is in the lower middle country with a GNI per GNI of $4,470 in 2024. It was $26 shy of the World Bank’s GNI adjusted demand for GNI at $4,996-$13,935 for Umic Status.
However, Mr Al-Rikabi said the World Bank should see three years of GNI per capita above the national restructuring threshold as IMIC.
“That means as long as the economy continues to grow in 2026-2027, the country will be a repeatIt has doubled as Imic in 2028,” he said.
Washington-based Londer will release its new national lineup in July 2026. – Ara inosante
