The Philippine economy is headed for a sharper slowdown in 2026 as elevated energy costs, weak public investment and subdued business confidence weigh on domestic demand, the World Bank said, while lowering its growth outlook for next year.
The Philippine government is moving to translate the World Bank’s Public Finance Review into concrete fiscal reforms, with economic officials stressing that better tax collection and spending will matter only if recommendations result in measurable improvements for citizens.
The Philippine government said it will act on recommendations from the World Bank’s latest Public Finance Review, putting a sharper focus on broadening the tax base, improving revenue collection and ensuring that public spending translates into measurable gains for Filipinos.
Accelerating power sector reforms could slash electricity prices, create more than 161,000 jobs and lift about 730,000 Filipinos out of poverty by 2030, with the World Bank arguing that lower energy costs may be one of the country's biggest catalysts for faster and more inclusive economic growth.
The World Bank Group has approved a USD268.6-million, or about P15.6-billion, water and sanitation project for the Philippines that is expected to create up to 46,500 jobs over the next 25 years while improving climate resilience in three island provinces.
Air travelers and shippers will face higher transport costs next month after the Civil Aeronautics Board (CAB) raised the fuel surcharge level for domestic and international flights amid climbing jet fuel prices.
The proposed restructuring of the Samal Island-Davao City Connector Project has cleared a key government review, bringing the toll-free bridge closer to final approval as officials seek to improve mobility, commerce and access to essential services in the region.
The Luzon Economic Corridor (LEC) could generate up to P2.9 trillion in economic activity during construction alone, potentially rivaling the contributions of remittances, tourism and IT-business process management (IT-BPM), according to property consultancy JLL Philippines.
Manila Water Philippine Ventures (MWPV) is rolling out proactive water security upgrades across Pangasinan and Isabela, two North Luzon provinces flagged by PAGASA as highly vulnerable to dry spells through late 2026, with drought risks extending into the first quarter of 2027.