OECD trims Phl growth forecasts

2025 EXPANSION SEEN AT JUST 4.7%

- By LOUELLA DESIDERIO

Photo shows the skyline of Manila along the Pasig River.

The Organization for Economic Cooperation and Development (OECD) has downgraded its growth forecasts for the Philippines for this year and the next amid a flood control controversy that has dampened investor sentiment.

In the OECD Economic Outlook December 2025 report released yesterday, the OECD said that the Philippine economy is projected to grow by 4.7 percent this year and by 5.1 percent in 2026.

These forecasts are lower than the OECD’s previous growth forecasts for the Philippines of 5.6 percent for this year and six percent for 2026.

The new growth projections are also below the government's 5.5 to 6.5 percent growth target for this year and six to seven percent growth goal for 2026.

For 2027, the OECD expects the Philippine economy to grow by 5.8 percent, also lower than the government's six to seven percent target for that year.

“Private consumption is supported by a strong labor market and contained inflation, but investment has weakened as the execution of public infrastructure projects has slowed on the back of a corruption scandal linked to public works,” OECD said.