ADB trims Phl growth outlook to 5% in 2025

The Asian Development Bank (ADB) has pared down its economic growth projections for the Philippines this year and the next, following through on signals it gave just days earlier that the sharp slowdown in the country's third quarter performance as well as the ongoing flood control corruption probe weighed on the outlook.

- By ALDEN MONZON

In its December update to the Asian Development Outlook released yesterday, the Philippines-based lender slashed its 2025 forecast to five percent from the 5.6 percent projected in September.

Its 2026 outlook was also trimmed to 5.3 percent from 5.7 percent.

"(Gross domestic product) growth slowed to four percent in the third quarter, averaging five percent for the year up to that period, mainly due to lower government spending on flood control projects amid investigations and stricter controls," the ADB said in its report.

Despite weaker investor confidence, the ADB said that activity in the private sector has held up better than expected.