The Asian Development Bank (ADB) has revised its economic growth forecast for the Philippines in 2026 downward, citing increased risks stemming from ongoing conflicts in the Middle East. In its latest Asian Development Outlook report, the Manila-based institution lowered its projection to 4.4%, a significant drop from the earlier estimate of 5.3%.
"Growth will remain subdued amid heightened risks from the ongoing Middle East conflict," the bank stated. "The Philippines is highly exposed given its heavy reliance on imported crude oil and refined oil products."
This adjustment highlights the country's vulnerability to global energy market fluctuations, which are being exacerbated by geopolitical tensions. The ADB anticipates a rebound in 2027, with growth expected to accelerate to 5.5%, suggesting a potential recovery once external pressures ease.