MANILA, July 23 (Xinhua) -- The Asian Development Bank (ADB) has revised down its gross domestic product (GDP) growth forecast for the Philippines for both this year and next, citing external headwinds, according to the latest Asian Development Outlook update released Wednesday.
In the report, the ADB expected the Philippine economy to grow 5.6 percent in 2025 and 5.8 percent in 2026, lower than the previous projections of 6.0 percent and 6.1 percent, respectively.
The downgrade follows weaker-than-expected growth in the first quarter of 2025, when GDP expanded 5.4 percent. While domestic demand rose by 6.7 percent, supported by easing inflation and accommodative monetary policy, net exports dragged on overall performance as brisk import growth outpaced exports.
The manufacturing Purchasing Managers' Index (PMI) edged up to 50.7 in June from 50.1 in May, signaling a modest expansion in the sector. However, business confidence softened amid rising global policy uncertainty, the report noted.
Despite external pressures, the report said consumer sentiment is likely to stay positive in the near term. Unemployment stood at 3.9 percent in May, and remittance growth of 3 percent continued to support household spending. Enitem
