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The World Bank preserved its Philippine gross domestic product (GDP) advancement projections for this year and 2026, in light of intensified uncertainty and decelerating global progress.
In its latest East Asia and Pacific Economic Update published on Tuesday, the multinational institution maintained its growth forecast for the Philippines at 5.3% for this year and 5.4% for 2026, unchanged from its estimates in June.
These estimates fall short of the government’s 5.5-6.5% aim for this year, and 6-7% for the subsequent year.
This year, the Philippines is anticipated to be the fourth fastest-growing economy in the East Asia and Pacific region, following Palau (11.9%), Mongolia (6.3%), and Vietnam (5.8%), and tied with Samoa.
By 2026, the Philippines is forecasted to achieve the second fastest growth after Vietnam (6.1%).
The nation’s growth projection exceeds the regional average, as East Asia and the Pacific is expected to grow by 4% this year and 4.1% in 2026.
“Growth in the East Asia and Pacific region remains fairly robust, yet it is decelerating,” stated World Bank East Asia and Pacific Chief Economist Aaditya Mattoo during a virtual briefing on Tuesday.
“Looking into the reasons behind the slowdown, we pinpoint three primary factors: trade barriers, increased uncertainty in economic policy, and sluggish global growth,” he remarked.
Mr. Mattoo indicated that most economies within the region are currently confronting heightened tariffs compared to the beginning of the year.
The US implemented a 19% tariff rate on Philippine-produced goods commencing August 7. — Aubrey Rose A. Inosante
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