Faster 2026 PH growth anticipated

The International Monetary Fund (IMF) slightly raised its economic growth forecast for the Philippines for 2026 even as output this year and next year would continue to grow below the country’s full potential.

- By BEN ARNOLD DE VERA

In its World Economic Outlook (WEO) Update report for July 2025, published on July 29 (Tuesday night Manila time), the IMF hiked its Philippine gross domestic product (GDP) growth projection for 2026 to 5.9 percent from 5.8 percent in the April 2025 WEO.

However, the IMF’s higher growth forecast for 2026 remained below the Marcos Jr. administration’s downgraded six-to seven-percent goal for next year.

The Washington-based multilateral lender retained its 2025 Philippine growth projection of 5.5 percent, which now hit the lower end of the government’s downscaled target range of 5.5 to 6.5 percent for this year.

The IMF’s growth expectations for the Philippines for the next two years are beneath the country’s potential of six-percent annual expansion, which economic managers had conceded would be unattainable in the near term due to global uncertainties spilling over locally.