Philippines poised for continued economic growth—World Bank

PHILIPPINES: The Philippines is projected to maintain its position as one of the fastest-growing economies in Southeast Asia, with the World Bank forecasting a 6.1% GDP growth in 2025. This growth follows an estimated 5.9% increase in 2024, according to the World Bank’s January 2025 Global Economic Prospects (GEP) report. The country’s robust expansion sets it apart as the second-largest economy in the region, trailing only Vietnam, which is expected to grow by 6.6%.

A strong economic foundation

According to the latest report from the Daily Tribune, from January to September 2024, the Philippines saw an average economic growth of 5.8%, largely fueled by resilient domestic consumption. The World Bank attributes this to a strong labour market and low inflation, which have supported household incomes and sustained consumer spending. This favourable environment is expected to continue into 2025, with the country’s economy outpacing regional competitors like Cambodia, Indonesia, and Malaysia, all of which are expected to grow at slower rates.

The World Bank’s projections align closely with the Philippine government’s growth target of 6–8% for 2025. Strong domestic demand, coupled with a stable labour market, is expected to drive the economy forward despite global challenges.

Navigating global risks

While the Philippines is on track for solid economic performance, risks remain, including global trade tensions, potential slowdowns in major economies like China, and the threat of climate-related disasters. The World Bank cautioned that emerging economies in the East Asia and Pacific region will need to remain resilient in the face of these uncertainties.

For 2026, the World Bank projects the Philippines to continue its growth trajectory with a 6% increase, maintaining its role as a regional leader.

However, the report stresses the need for proactive policy measures to ensure sustained growth. This includes investments in infrastructure, human capital development, and efforts to strengthen financial stability. With these actions, the Philippines can safeguard its economic future and continue to thrive in a dynamic global environment.