Philippines Lowers 2025-28 GDP Growth Targets Amid Global Uncertainties

The Philippine government has lowered its economic growth target for 2025 to a range of 5.5% to 6.5%, down from the previous 6.0% to 8.0%, due to escalating global uncertainties such as Middle East tensions and the imposition of US tariffs. The Development Budget Coordination Committee (DBCC), led by Budget Secretary Amenah Pangandaman, also narrowed growth projections for 2026 to 2028 to 6.0% to 7.0%, while lowering the 2025 inflation target to 2.0% to 3.0%. Despite these revisions, the DBCC emphasized its readiness to implement targeted measures to mitigate economic impacts, citing ample international reserves as a buffer against external shocks. The government plans to prioritize price stabilization, expand trade partnerships, and boost domestic industries, with an accelerated focus on government programs and the services sector. Recent tensions between Israel and Iran have contributed to these economic concerns, although a ceasefire was reached with pressure from US President Donald Trump. Additionally, expectations include a 2.0% contraction in goods exports and a 3.5% increase in goods imports for the year.