The Philippines is heading into 2026 with economic resilience that continues to impress global observers—but experts warn that sustaining momentum will demand sharper reforms and more agile policymaking.
This message rang loud at the 2026 Philippine Economic Outlook hosted by the European Chamber of Commerce of the Philippines (ECCP) on Dec. 4, 2025 at Dusit Thani Manila, where business leaders, bankers, and regulators sized up the country’s prospects amid a world marked by geopolitical frictions, tariff swings, and climate volatility.
ECCP president Paulo Duarte underscored that the Philippines remains on track to be one of Southeast Asia’s faster-growing economies, fueled by a large young workforce, stable remittance inflows, and continued foreign and domestic investments. But he cautioned that optimism must be balanced with vigilance. “We cannot overlook the challenges and uncertainties looming as we transition into the coming year,” he said.
Jun Palanca, managing director and country manager of ING Bank N.V., said the slightly disappointing third-quarter growth in 2025 has not derailed the country’s medium-term trajectory. He pointed to favorable demographics, ongoing structural reforms, and rapid digitalization as forces powering activity in energy, infrastructure, agriculture, and technology.
S&P’s recent affirmation of the Philippines’ BBB+ rating, he added, highlights solid fundamentals—though political risks and governance gaps still threaten long-term confidence.
Bangko Sentral ng Pilipinas Department of Economic Research managing director Dennis D. Lapid noted that easing inflation gives the central bank room for calibrated monetary adjustments, even as cooling sentiment may temper short-term expansion. He emphasized that strong external buffers and a robust banking system continue to anchor stability.
Securities and Exchange Commission chairman Francis Edralin Lim closed the discussion with a reminder that growth alone is not enough. A fast, fair, and reliable regulatory environment, he said, remains crucial to attracting investors who demand predictability as much as opportunity.
