The World Bank has maintained its 2026 growth forecast for the Philippines at 3.7%, citing weak investment, constrained consumption, and sustainability concerns. According to Zafer Mustafaoglu, the World Bank division director for the Philippines, Malaysia, and Brunei, growth is expected to decelerate in 2026.

The new forecast is slightly below the 4.1% average growth expected for developing economies in East Asia and the Pacific. The World Bank expects growth to rebound to 5.2% in 2027 and reach 5.5% in 2028, as public investment gradually recovers and economic conditions improve.

The Philippine government’s economic managers expect growth of 3.5% to 4.5% this year, lower than previously forecast due to the Middle East crisis and an infrastructure-related corruption scandal that slowed government spending. The economy grew 2.8% in the first quarter, below expectations, weighed down by the Middle East conflict and a delayed budget passage.

Inflation is seen averaging 5.8% for the year, below the 6% to 7% projection by Philippine economic managers. Average inflation is projected to ease to 5.2% in 2027, as governance conditions stabilize, public investment gradually recovers, and the central bank resumes monetary easing.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.