Philippine economy may see faster growth in 2026, 2027 – UN

By Aubrey Rose A. Inosante, Reporter

The Philippine economy may expand at a faster pace this year and in 2027, supported by household consumption and softer inflation, the United Nations (UN) said, as the country rebounds from a corruption scandal.

In its latest World Economic Situation and Prospects report, the UN projected the Philippine gross domestic product (GDP) to grow by 5.7% this year and 6.1% in 2027.

“In the Philippines, low inflation, robust labor market conditions, and steady remittance inflows have buoyed consumer spending, while government spending and investment have further supported growth,” the UN said.

The UN’s forecasts are both within the revised government’s 5-6% growth target for this year and within the 5.5-6.5% target for 2027.

It also noted that GDP growth likely averaged 5% in 2025, below the government’s 5.5-6.5% target and the actual 5.7% growth in 2024.

Economy Secretary Arsenio M. Balisacan earlier said the Philippines’ economic growth may have slowed to 4.8% to 5% in 2025, due to the controversy on anomalous flood control projects that affected government spending and hurt business and consumer confidence.

The Philippine Statistics Authority will release official fourth-quarter and full-year 2025 GDP data on Jan. 29.

Despite this, the Philippines is projected to be the second-fastest-growing economy in Southeast Asia this year and in 2027.

Vietnam is projected to grow by 6% this year, followed by the Philippines (5.7%), Cambodia (5.1%), Indonesia (5%), Malaysia (4.0%), Laos (3.8%), Timor-Leste (3.3%), Myanmar (3%), Thailand (2%), Singapore (1.8%), and Brunei (1.5%).

For 2027, Vietnam is still likely to post the fastest growth at 6.2%, followed by the Philippines (6.1%), Cambodia (5.5%), Indonesia (5.2%), Malaysia (4.5%), Laos (4%), Timor-Leste (3.2%), Myanmar (3%), Thailand (2.6%), Singapore (2%), and Brunei (2.1%).

The Philippines’ forecast is above than the UN’s projected average growth of 4.4% for East Asia this year and in 2027.

At the same time, the UN also anticipates inflation settling at 2.3% in 2026 and 2.8% in 2027, slower than the BSP’s 3.2% forecast for 2026, and 3% in 2027.

Headline inflation picked up to 1.8% in December, which brought the full-year average to 1.7% in 2025.