ADB, ESCAP see Philippines economy growing at least 6% this year

MANILA, Philippines — The Philippine economy is seen growing at a faster pace of at least six percent this year from the revised 5.7 percent last year, according to the Asian Development Bank (ADB) and the Economic and Social Committee for Asia and the Pacific (ESCAP).

The Asian Development Outlook April 2025 report released yesterday showed that the ADB expects Philippine gross domestic product (GDP) growth at six percent this year, down from its 6.2 percent forecast provided in December last year.

Despite the downward adjustment, the ADB’s 2025 GDP growth forecast for the Philippines is still within the government’s six to eight percent growth target for this year.

The forecast is also among the highest in Southeast Asia next to the projected 6.6 percent for Vietnam and 6.1 percent for Cambodia.

“The slight downgrade from 6.2 percent in December actually considered the lower than expected turnout in Quarter 4 of 2024 because we have seen household spending growth moderated more than we expected. This was also as the effect of the lingering impact of high inflation for most of the year, although it trended lower in the second half up to the fourth quarter. And also the lagged impacts of tight monetary policy,” ADB Philippines senior economics officer Teresa Mendoza said in a press briefing yesterday.

In the fourth quarter of 2024, the Philippine economy posted a revised 5.3-percent growth. This brought the full-year growth to 5.7 percent, below the government’s six to 6.5 percent revised target.

For next year, the ADB expects the Philippine economy to expand at a faster rate of 6.1 percent, within the government’s six to eight percent growth target.

It is also the third fastest growth projection of the ADB in Southeast Asia for 2026, with Vietnam expected to grow by 6.5 percent and Cambodia by 6.2 percent.

ADB Philippines country director Pavit Ramachandran said the forecasts were finalized before the new United States tariffs were announced on April 2, so some of its impacts have not been factored in the outlook projections.

The ADB expects Philippine economic growth this year and the next to be supported by stronger domestic demand and sustained public investment.