Economic growth across developing Asia and the Pacific will ease to 5 percent this year from 5.5 percent in 2025, then edge up to 5.1 percent in 2027, the Asian Development Bank (ADB) reported Wednesday. The 2026 forecast is a slight upgrade — 0.1 percentage points higher than the bank’s July outlook.
The Philippines shares in this regional resilience. Solid investment, government spending, and strong tech exports boosted by the global AI boom are keeping expansion on track, even as headwinds mount.
ADB President Masato Kanda noted: “The region has remained resilient, but the risks are growing.” A stronger El Niño is bringing drier weather, cutting harvests and hydropower output, and pushing food and energy costs higher — hitting the poorest hardest. Extended energy supply challenges and fresh financial market uncertainty make it critical to shield vulnerable communities, with ADB backing these efforts.
Inflation is set at 4.2 percent for 2026 — a tick down from July’s 4.3 percent estimate — as government price controls ease pressure from expensive energy. For 2027, inflation is seen at 3.5 percent, slightly higher than previously projected. Both years remain above 2025’s 3 percent rate.
