The Asian Development Bank (ADB) lowered this year's economic growth forecast for the Philippines to 3.8 percent, which is lower than the 2025 growth of 4.4 percent.

In its July outlook, the country's Gross Domestic Product (GDP) was trimmed from the previous ADB forecast of 4.4 percent released last April.

Inflation projections were raised to 5.9 percent this year from four percent.

The ADB's growth forecast for 2026 is within the newly revised Development Budget Coordination Committee (DBCC) target of 3.5 percent to 4.5 percent.

However, for 2027 the ADB forecast growth at 5 3 percent from 5.5 percent previously.

The Philippines' growth projection was lowered ''due to delayed investments, softer private consumption amid higher commodity prices and climate-related risks'', the ADB report said.

Also lowering the Philippines' growth numbers was the International Monetary Fund which reduced it to 3.9 percent from 4.1 percent.

The ADB also lowered its growth forecast for developing Asia and the Pacific economies to 4.9 percent for 2026 compared to 5.5 percent growth in 2025.

It noted that "prolonged disruptions to energy markets caused by the Middle East conflict have weighed more heavily on the region’s prospects than anticipated."

Meanwhile, the 2027 growth forecast is maintained at 5.1 percent, "reflecting recovering activity as these pressures ease." Robina Asido/PHS