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Philippines’ 2026 growth forecast cut in latest World Bank Economic Update

The Philippines’ 2026 growth forecast has been cut to 3.7 percent from 5.4 percent, marking one of the sharpest downgrades in the region, in the World Bank’s April Economic Update.

Growth is projected to rebound to 5.6 percent in 2027, indicating expectations of a recovery after weaker near-term performance.

The economy expanded 4.4 percent in 2025, below earlier projections of 5.3 percent.

Compared to regional peers, the Philippines’ outlook shows greater volatility, with near-term growth now below most Southeast Asian economies.

TABLE: GDP growth rates, World Bank Economic Update April 2026

Apr 2026 forecastOct 2025 forecast
2015–192020–2420252026202720252026
Cambodia8.03.14.83.94.94.84.3
Indonesia5.03.45.14.75.24.84.8
Lao PDR6.62.74.53.53.73.73.6
Malaysia4.93.15.24.44.44.14.1
Myanmar6.4−3.3−1.32.04.0−1.83.0
Philippines6.63.04.43.75.65.35.4
Thailand3.40.72.41.32.32.01.8
Timor-Leste5.21.04.54.14.04.03.4
Vietnam7.15.28.06.37.66.66.1
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