World Bank Projects 6% Average Growth for Philippine Economy Through 2026

The World Bank forecasts the Philippine economy to grow at an average rate of 6% from 2024 to 2026, contingent on controlling inflation, fostering business growth, and sustaining infrastructure investments.

Economic Outlook

In its Philippines Economic Update (PEU) released Tuesday, the World Bank noted that achieving this growth requires a balanced monetary policy, continued infrastructure spending, and resilience to global uncertainties.

“Strong growth puts the country on a firmer footing to maintain gains in poverty reduction,” said Zafer Mustafaoglu, World Bank country director for the Philippines, Malaysia, and Brunei Darussalam.

The report emphasized the importance of proactive measures to shield vulnerable households from extreme weather events, such as typhoons and monsoon rains, which have disrupted key sectors like agriculture, tourism, and construction.

Growth Projections

For 2024, the World Bank projects GDP growth of 5.9%, slightly down from its earlier estimate of 6%, reflecting a slowdown in the third quarter. Growth in the third quarter was 5.2%, lower than the 6.4% seen in the second quarter.

Looking ahead, the economy is expected to accelerate, with growth reaching 6.1% in 2025 and sustaining 6% in 2026.

Poverty Reduction and Economic Recovery

The World Bank highlighted that robust economic growth would continue driving poverty reduction through improved household incomes, job creation, and sustained recovery efforts.

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan noted the Philippines has a “good chance” of achieving upper middle-income status by 2025 and reducing poverty incidence to single digits by 2028.

Challenges and Resilience

The World Bank acknowledged challenges posed by extreme weather and global uncertainties but maintained that the Philippines is poised for strong recovery if inflation and external risks are managed effectively.