The Market Monitor Minding the Nation's Business
The World Bank has maintained its Philippine economic growth projections for 2025 and 2026, citing strong domestic demand and structural reforms that continue to support expansion.
In its October East Asia and Pacific Economic Update, the World Bank forecast the Philippine economy to grow by 5.3 percent in 2025 and 5.4 percent in 2026, outpacing growth expectations for China, Indonesia, Malaysia, and Thailand.
The multilateral lender said growth will be driven by easing inflation, lower interest rates, a robust labor market, and sustained infrastructure investments exceeding five percent of gross domestic product (GDP).
“(The) Philippines will benefit from robust domestic demand, supported by easing inflation, lower interest rates, and strong labor markets. Growth will also be sustained by public infrastructure investment and private investment spurred by the reforms,” the report said.
It noted that recent structural reforms—particularly those opening up key sectors such as logistics, telecommunications, and renewable energy—are expected to enhance investment and productivity.
The World Bank also cited the country’s Enterprise-Based Education and Training Framework, which aims to strengthen workforce skills through reskilling and upskilling initiatives.
To sustain growth, the lender underscored the need for effective reform implementation, improved ease of doing business—highlighting that it currently takes 106 days to register a foreign firm—and a continued focus on fiscal consolidation to maintain infrastructure investment while preserving macroeconomic stability.