ADB: PH GDP outlook resilient' amid global risks

Inflation is projected to slow to 1.8 percent in 2025 before rising to three percent in 2026, remaining within the government's target range of twoto four-percent annual price increases deemed manageable and conducive to economic growth. Headline inflation averaged 1.7 percent as of end-August.

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The updated 2025 inflation forecast is lower than July's projection of 2.2 percent, with slower global commodity prices and subdued food costs-helped by improved domestic rice supply-seen keeping inflation contained.

"This subdued inflation outlook will support an accommodative monetary policy," the ADB said.

Since the Bangko Sentral ng Pilipinas (BSP) started its easing cycle in August 2024, it cut key interest rates by a total of 150 basis points (bps), lowering the policy rate to the current five percent.