MANILA, Dec. 10 (Xinhua) -- The Asian Development Bank (ADB) has revised downward the Philippines' economic growth forecasts for 2025 and 2026 amid reduced public infrastructure spending and tighter scrutiny of government projects, according to the Asian Development Outlook December 2025 released on Wednesday.
The country's gross domestic product growth is now projected at 5 percent for 2025, down from an earlier estimate of 5.6 percent, and at 5.3 percent for 2026, lower than the previous forecast of 5.7 percent.
The ADB's downgrade reflects both reduced public infrastructure spending and stricter controls on government projects, amid ongoing investigations into anomalous flood control programs.
The economy expanded 4 percent in the third quarter, pulling the year-to-date average to 5 percent, as sluggish public spending weighed on overall activity.
Still, the bank said pockets of resilience emerged: private construction continued to grow despite subdued investor sentiment, and October's Purchasing Managers' Index (PMI) signaled expansion in services (50.8) and retail and wholesale trade (51.3).
However, the bank noted that the manufacturing sector showed fresh signs of strain.
The S&P Global manufacturing PMI fell to 47.4 in November, slipping back into contraction territory from 50.1 in October. Even so, firms remained optimistic about output prospects over the next 12 months.
Household consumption also moderated but remained supported by low unemployment, which eased to 3.8 percent in September 2025, and by steady remittances.
"Low inflation and ongoing monetary easing should help sustain domestic demand, supporting stronger growth in 2026," says the report.
Still, the bank said risks remain. Prolonged investigations into publicly funded infrastructure projects, combined with potential weather-related disruptions, could further temper the growth outlook in the months ahead. ■
