ADB cuts PH growth outlook on war, climate risks

MANILA, Philippines — The Asian Development Bank (ADB) trimmed its growth outlook for the Philippines, citing heightened global uncertainties from a prolonged Middle East conflict and climate-related shocks.

In its flagship Asian Development Outlook report published Wednesday, the ADB cut its 2026 growth estimate for the Philippines to 3.3 percent, from the prior forecast of 3.8 percent. 

READ: IMF, ADB slash PH growth forecast

The bank also lowered its outlook for 2027, estimating the economy to expand 5.1 percent from the previous projection of 5.3 percent.

“The economy continues to feel the impact of the Middle East conflict, but business indicators point to expected improvements in economic activity, with the industry sector still looking to expand next year,” said ADB Philippines Country Director Andrew Jeffries. 

READ: DBCC cuts PH 2026 growth target to 3.5-4.5%

“For the Philippines to ride through the effects of external and domestic shocks in the near term, timely government spending on planned investments, especially in the social sector and critical infrastructure projects, will be important,” he added. /pai