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PH growth leads emerging markets
Manila Bulletin
|October 4, 2025
Despite frequent weather disturbances, recurring typhoons, and persistent corruption issues in flood control, the Philippines is still expected to emerge as one of the fastest-growing emerging market (EM) economies in 2026, according to the think tank Oxford Economics.
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In an Oct. 2 report, Oxford Economics senior economist Callee Davis said the Philippines is expected to achieve 5.7-percent gross domestic product (GDP) growth next year. However, the think tank's forecast is below the government's sixto seven-percent target for 2026.
"In the Philippines, moderate inflation, accommodative monetary policy, resilient remittances, and large public spending programs underpin growth," the report said.
The think tank highlighted that the Philippines, India, Saudi Arabia, the United Arab Emirates (UAE), and Vietnam-all located in Asia-would be the fastest-growing EMs next year.
The think tank expects the Philippines, India, Indonesia, and Thailand could see an additional 25 to 75-basis-point (bp) interest rate cuts, completing their easing cycle by early 2026.
By 2026, the think tank observed that employment, labor supply, and real wages in the Philippines are expected to reflect moderate wage pressures, supported by relatively balanced labor markets.
This story is from the October 4, 2025 edition of Manila Bulletin.
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