Philippines Economic Updates

Powering Progress: Electricity, Competitiveness, and Growth Pathways This edition of the Philippines Economic Update discusses the country's recent transition to upper-middle-income status in 2025, following average annual growth of 5.8 percent from 2021–2025. Growth has since slowed due to weakened investment, policy uncertainty, and rising energy prices. The report has a special focus on the power sector argues that accelerated reforms—including renewable energy adoption and expanded transmission—could lower costs, create jobs, and boost GDP by over 1 percent by 2030. Full Report | Press Release | Event Replay Presentation of PEU Midyear 2026 Edition by Jaffar Al-Rikabi, Senior Country Economist: Presentation on Accelerating Growth as an Upper-Middle-Income Country by Gonzalo J. VarelaGrowth Corridors: Pathways Out of Poverty The Philippine economy slowed in 2025 as domestic shocks, weaker investment, and soft global demand weighed on growth. However, a modest recovery is expected in 2026–2027, supported by resilient consumption and easing inflation. The PEU highlights that sustaining growth in the coming years will require stronger execution of public investments, credible fiscal consolidation, and structural reforms to enhance competitiveness in the tradables sector (including manufacturing, agriculture, information technology, and tourism) and to harness high-potential urban corridors. Full Report Presentation of the Macroeconomic Section by Jaffar Al-Rikabi, Senior Country Economist Presentation the special focus, "Closing the Gaps: The Role of Urbanization and Local Service Delivery for Integrated Development in the Philippines" by Narae Choi, Senior Urban Specialist Press Release | Report Launch EventSmall Business, Big Impact: Catalyzing Philippine Growth Unlocking the potential of the country’s business sector, particularly that of its small and medium-sized enterprises, will help the Philippines maintain its strong growth trajectory. The PEU forecasts that GDP will grow by 5.3% in 2025, down just 0.3 percentage points compared to the average for 2023-2024. This is thanks to a robust job market, stable and low inflation, and supportive fiscal and monetary policies, which are helping offset strong headwinds caused by increasing trade barriers and greater financial market volatility. Full Report | Report Launch Event Replay (June 19, 2025) | Press Release: Boosting Private Sector Growth and Job Creation Key to Mitigating Global Uncertainty and RiskFirst Steps Matter: Empowering Early Years Workers to Build Human Capital Amid heightened geopolitical tensions, the Philippines’ economy is expected to remain robust, growing at an average rate of 6% over 2024-2026 and sustaining poverty reduction. Full Report | Infographic | Report Launch Event Replay (December 12, 2024) Press Release: Philippines’ Economy Maintains Strength Amid Global Geopolitical Tensions Press Release: Empowering Local Governments Key to Boosting Human Capital in the Philippines Beyond the Numbers: Sustaining Poverty Reduction in BARMM (June 2024) The Philippine economy is forecast to accelerate to 5.8% growth in 2024 from 5.5% last year and to 5.9% in 2025. Growth is expected to be driven by strong household consumption, sustained strength in the services sector, and improved trade stemming from a rebound in global demand for goods and the continued recovery of services exports such as tourism. Full Report | Infographic | Report Launch Event Replay Slide Presentation of the Growth Outlook for the Philippines | Slide Presentation of the special focus on sustaining poverty reduction in the BARMM Press Release: Bolstering Resilience Against Climate Change Key to Sustaining Inclusive Growth Press Release: Boosting Farm Profitability, Access to Social Services, Infrastructure Key to Poverty Reduction, Lasting Peace in BangsamoroDecember 2023: Safe Water and Sanitation for All Fully implementing key reforms to bolster private investments is crucial for sustaining growth and boosting job creation in the Philippines amid challenges including high inflation, elevated interest rates, sluggish international trade, and global uncertainties associated with Russia’s invasion of Ukraine and conflict in the Middle East. Full Report | Report Launch Event Replay (7 December 2023) Press Release: Implementing Reforms to Boost Private Investment Key to Sustained Job Creation and Poverty Reduction in the Philippines Press Release: Municipalities and Cities Need Strong National Government Support to Ensure Safe Water and Sanitation for All FilipinosJune 2023: Securing a Clean Energy Future Improving the efficiency of social protection in the Philippines remains essential to protect the poor and most vulnerable from economic shocks as the country grapples with global uncertainties and domestic risks including high inflation. Bucking global trends, strong domestic demand in the Philippines is expected to propel its economy to a 6.0 percent growth in 2023 and 5.9 percent the following year. Strong domestic demand is underpinned by consumer spending drawing strength from the continuing jobs recovery and the steady flow of remittances. Fixed capital investment will also contribute to growth, anchored on upbeat domestic activity, and improved business confidence. Full Report | Report Highlights | Press Release | Report Launch Event Replay on 8 June 2023 | Economic Update Slide Presentation | Energy Transition Slide PresentationDecember 2022: Bracing for headwinds, Advancing Food Security The December 2022 edition of the PEU includes a special focus on the topic of Public Expenditure Review for Agriculture and lays out the importance of improving the effectiveness of public spending in the sector. It also looks into the financial and functional devolution resulting from the Mandanas ruling and the challenges and policy recommendations toward achieving the medium to long term agenda of agriculture productivity and food security. Full Report | Press Release | Report Launch ReplayJune 2022: Strengthening the Digital Economy to Boost Domestic Recorvery Anchored on more robust domestic activities, the Philippines is poised to grow 5.7 percent in 2022 and 5.6 percent on average in 2023-24 amidst intensifying global uncertainties. Continuity of policies supporting growth and investments are key to strengthening recovery in the Philippines. Full Report | Press Release | Report Launch ReplayDecember 2021 Regaining Lost Ground, Revitalizing the Filipino Workforce From the deep economic contraction last year, the Philippines is on the path to economic recovery. There are clear signs of rebounds in domestic activity, community mobility, industrial output, and recently with bank lending activities. However, there are challenges to growth with the continuing threat of the pandemic amid narrowing policy space. The key policy challenges are to protect long term fiscal sustainability, leverage the private sector in the recovery, and limit the economic scarring from the pandemic. Full Report | Press Release "PHILIPPINES: Boosting Private Sector Growth Can Strengthen Recovery, Create More Jobs" | Report launch ReplayJune 2021 Navigating a Challenging Recovery Weighed down by the COVID-19 pandemic, the Philippine economy is forecast to grow at 4.7 percent this year before accelerating to 5.9 percent in 2022 and 6.0 percent in 2023. Local governments have played a crucial role at the front lines of the COVID crisis. A current lack of resources prevents local government units (LGUs) from fulfilling their devolved mandates. Full Report | Key Findings | Press Release: Ramping Up Vaccination, Improving Pandemic Response Can Strengthen Recovery Report Launch Replay | Press Release: Mandanas Ruling Provides Opportunities for Improving Service Delivery Through Enhanced DecentralizationDecember 2020: Building a Resilient Recovery The multiple shocks that hit the Philippines – the COVID-19 health crisis, economic activities across the country frozen by quarantine measures, devastating typhoons in November, and the global recession – will likely shrink the economy by 8.1 percent in 2020, temporarily reversing gains made in poverty reduction in recent years. Sustained improvements in managing the pandemic and a possible rebound in the global economy, however, can help the country recover in 2021 and 2022. Full Report | Press Release | Report Launch ReplayJune 2020: Braving the New Normal Hammered by natural disasters and COVID-19, the Philippine economy is projected to contract by 1.9 percent in 2020. But there are good chances that the country can bounce back in the next two years. Full Report | Press ReleaseOctober 2019: Resuming Public Investment, Fast Tracking Implementation High impact projects and critical reforms are key to regaining higher growth. Press Release | Report Highlights | Full Report (pdf) April 2019: Safeguarding Stability, Investing in the Filipino Amidst lingering global and local uncertainties, the Philippine economy is poised to grow at 6.4 percent in 2019 and 6.5 percent in 2020 and 2021. Highlights | Full Report (pdf)October 2018: Staying in the Course Amid Global Uncertainty Amidst rising global uncertainty and inflationary pressures, the Philippine economy is poised to remain strong and is projected to grow at 6.5 percent in 2018, 6.7 percent in 2019, and 6.6 percent in 2020. Full Report (pdf)April 2018: Investing in the Future Investments in infrastructure and education, skills, and health, are not only key to sustaining high growth but will also ensure that poor and vulnerable families have access to better job opportunities. Delivering inclusive economic growth through good jobs remains the country’s most pressing challenge. Highlights | Full Report (pdf) October 2017- Preserving Consistency and Policy Commitment Get Key Findings | Download report Sections in this edition:Part 1: Recent policy and economic developments – page 1Part 2: Outlook and Risks – page 32Part 3: Unlocking Mindanao’s potential – page 47 April 2017- Advancing the Investment Agenda Get Key Findings | Download report Sections in this edition:Recent Economic and Policy Developments – page 1Outlook and Risks – page 21Trade Competitiveness and Global Value Chains in the Philippines – page 28 October 2016- Outperforming the Region and Managing the Transition Get Key Findings / Download report Sections in this edition:Recent Economic and Policy Developments – page 1Outlook and Risks – page 17Increasing Tax Revenues Efficiently and Equitably – page 28 April 2016- Moving Full Speed Ahead: Accelerating Reforms to Create More and Better Jobs Get Key Findings / Download report Sections in this edition • Recent Economic and Policy Developments - page 5- Prospects and Risks - page 14- Policies: A Retrospective and Forward Look on How to Create More and Better Jobs• Medium-Term Reform Agenda: Enhancing competition - page 29 October 2015- Making Growth Work for Small Businesses Get Key Findings / Download report Sections in this edition • Recent Economic and Policy Developments - page 1- Prospects, Risks and Policies - page 14• Medium-Term Reform Agenda: Enhancing competition - page 29 Special Focus 1. Real cost of starting and maintaining a business - page 452. Export transaction costs in the Philippines – page 60 January 2015- Making Growth Work for The Poor Get Key Findings / Download report Sections in this editionRecent Economic and Policy Developments - page 1• Prospects, Risks and Policies - page 10• Medium-Term Reform Agenda: Enhancing competition - page 20Special Focus 1. Congestion in Metro Manila and its impact on the economy - page 342. Potential power shortages in Luzon and the way forward – page 403. Reviving Philippine electronics exports – page 444. Liberalizing rice policy in the Philippines – page 545. Enhancing competition in the domestic shipping industry – page 63 August 2014- Investing in the Future Get Key Findings / Download report (.pdf) Sections in this edition Recent Economic and Policy Developments - page 1Prospects, Risks and Policies - page 10Medium-Term Agenda: Tax Reform Package for more Inclusive Growth - page 14Special Focus China's Slowdown and Rebalancing: How the Philippines can still benefit - page 25 March 2014- Pursuing economic growth through sustainable reconstruction and job generation Get Key Findings / Download report (.pdf) Sections in this editionRecent Economic and Policy Developments – page 10Prospects , Risks and Policies – page 27Building Back Better after Typhoon Yolanda – page 37Medium term agenda: Working together to address the jobs challenge – page 47Special Focus1: Philippine tourism industry challenge – page 72: Impact Evaluation of the Kalahi – CIDSS – page 77 May 2013- Accelerating Reforms to meet the Jobs Challenge Download the report (.pdf) Sections in this editionRecent Economic and Policy Developments – Page 6Prospects and Policies – Page 21Special Focus1: Measuring changes in inventory and statistical discrepancy in the national income accounts – page 302: The Philippine Real Estate Market: A cause for concern? An update – page 333: The Comprehensive Tax Reform Program of 1986 and related tax administrative reforms – page 414: Impact Evaluation of the conditional cash transfer program – page 435: Procurement modernization strategy: an update – page 49 December 2012- Accelerating Reforms to Sustain Growth Get Key Findings / Download the report (.pdf) Sections in this editionRecent Economic and Policy Developments – p. 1Prospects and Policy Recommendations – p. 13Special Focus Sustaining Growth in the Philippine BPO sector: Opportunities and Challenges – page 23 July 2012- Investing in Inclusive Growth Amid Global Uncertainty Get Key Findings / Download the report (.pdf) Sections in this editionRecent Economic and Policy Developments – p. 1Prospects – p. 12Special Focus Access to Basic Financial Services in the Philippines – p. 19 March 2012- From Stability to Prosperity for all Get Key Findings / Download the report (.pdf) Sections in this editionRecent Economic and Policy Developments – p. 1Prospects and Policy Recommendations – p. 13Special Focus1: Financing the Economic Cost of Disasters in the Philippines – p. 232: Cycles of Conflict and Displacement in Mindanao - - p 303: The Philippine Real Estate Market: A cause for concern? – page. 374: Stepping Up Disbursements by Improving Absorptive capacity in Agencies – p. 43 December 2011- Sustaining Growth in Uncertain Times Get Key Findings / Download the report (.pdf) Sections in this editionRecent Economic and Policy Developments – p. 1Prospects and Policy Recommendations – p. 11Special Focus1: Raising Excise Taxes on Tobacco and Alcohol Products – p. 152: Philippine Exports: Where do they stand? – p. 24 September 2011- Solid Macroeconomic Fundamentals Cushion External Turmoil Get Key Findings / Download the report (.pdf) Sections in this editionRecent Economic and Policy Developments - p. 1Prospects - p. 9Special Focus1: External Spillovers to Philippine Growth - p. 132: The 2012 Proposed National Budget - p. 17 June 2011- Generating more inclusive growth Get Key Findings / Download the report (.pdf) Sections in this editionRecent Economic and Policy developments – p 1Prospects – p. 9Special Focus Poverty, the services sector and the 2011 national accounts revisions – p. 19 January 2011- Robust growth, stubborn poverty Get Key Findings / Download the report (.pdf) Sections in this edition Recent Economic and Policy Developments – p. 1Prospects – p. 9Special Focus Food prices, fiscal risks and exports of services – p. 14 September 2010- Stepping up Reforms to Sustain Growth Get Key Findings / Download the report (.pdf) Sections in this editionRecent Economic and Policy Developments – p. 1Prospects – p. 12Special Focus The national government budget, employment, financial shocks and constraints to growth in Mindanao – p. 15 June 2010- The Recovery Continues despite Global Financial Turbulence Download the report (.pdf) Sections in this edition Recent Economic and Policy Developments – p. 1Prospects – p. 8Special FocusSelected special focus from recent quarterly updates – p. 26 February 2010- Laying out the exit strategies Download the report (.pdf) Sections in this editionRecent Economic and Policy Developments – p. 1Prospects – p. 17 November 2009- Towards an Inclusive Recovery Download the report (.pdf) Sections in this editionRecent Economic Developments – p. 4Prospects – p. 12 July 2009- Sailing Through Stormy Waters Download the report (.pdf) Sections in this editionRecent Economic Developments – p. 3Polices – p. 11Prospects – p. 16 April 2009- Philippines Quarterly Economic Update Download the report (.pdf) Sections in this edition Recent Economic and Policy Developments – P. 3 November 2008- Philippines Quarterly Economic Update Download the report (.pdf) Sections in this edition Recent Economic and Policy Developments – P. 3 Special Focus1: The new purchasing power parities and poverty in the Philippines – page. 302: Inflation and the Poor page – p. 34