The Asian Development Bank (ADB) projects the Philippine economy to grow by 6 percent in 2025, driven by strong domestic demand and steady government investments, even as it flags potential global headwinds.
In its latest Asian Development Outlook, ADB highlighted that the country’s growth momentum will be supported by rising consumer spending, fueled by job gains, increased wages, and the steady inflow of remittances from overseas Filipinos. The upcoming elections are also expected to stimulate additional economic activity.
“The Philippines remains a bright spot in the Southeast Asian region, with robust private consumption and sustained investments, particularly on infrastructure, continuing to fuel growth,” said Pavit Ramachandran, ADB Country Director for the Philippines.
The Manila-based lender also cited expanded public spending, particularly on infrastructure and social services, as a major driver of economic resilience, helped by a bigger national budget.
However, the forecast was made before U.S. President Donald Trump announced new tariffs on imports from the Philippines and other countries—a move that could dampen trade prospects. ADB warned that such developments, along with geopolitical tensions and climate-related disruptions, could weigh on investor confidence and impact economic performance.
Still, the bank remains cautiously optimistic, emphasizing the country’s solid domestic fundamentals and proactive policy support.
