Despite a sharp rise in April inflation and mounting external risks, the Philippines remains “on the right track,” according to Asian Development Bank chief economist Albert Park, who spoke to CNBC during the lender’s annual meeting in Uzbekistan on Tuesday.
He emphasized the broader resilience of the Philippines and its regional peers amid ongoing global economic turbulence.
Inflation surged to 7.2 percent in n April, driven largely by soaring global oil prices and the country’s heavy reliance on imported energy.
Park characterized the spike as a supply-driven shock, noting that “the usual advice… is not to try to raise interest rates,” as price pressures stem more from higher fuel and input costs than excess demand. The Philippines’ dependence on oil imports—particularly from the Middle East—has left it especially exposed to volatile price swings.
Still, risks persist that inflation could spread more widely. Park warned that rising costs for fuel, fertilizers, and industrial inputs may increasingly filter through supply chains and shape price expectations. If that happens, central banks could be forced to act more decisively to keep inflation in check.
Fiscal concerns have also intensified after Fitch Ratings revised the country’s outlook to negative. Even so, Park cautioned against undue pessimism.
“We shouldn’t discount their prospects too quickly… the fundamentals are in the right directions,” he said, pointing to the region’s continued dynamism.
For the Philippines, sustained investments in infrastructure and renewable energy remain key advantages. With targeted policy support and continued reform momentum, Park said the country is well-positioned to navigate near-term shocks while maintaining long-term growth.
