Phl growth forecast for 2026 slashed

The Philippine economy is expected to post slower growth of 5.2 percent next year due to challenges such as the United States' trade policies and corruption issues in flood control projects that may affect consumption and investment, according to research and analysis firm BMI.

- By LOUELLA DESIDERIO

In a report, the Fitch Solutions unit said that while it is sticking to its gross domestic product (GDP) growth forecast of 5.4 percent for this year, it is downgrading its growth outlook for next year.

"We have revised downwards our 2026 GDP growth forecast to 5.2 percent from 6.2 percent due to subdued domestic consumption and weak investment sentiment," BMI said.

BMI's growth forecasts for this year and the next are below the government's growth targets. The government is aiming to achieve 5.5 to 6.5 percent growth for this year.

As of the first semester, the economy posted average growth of 5.4 percent.

For 2026, the government has set a six to seven percent growth target.