S&P lifts Philippines growth outlook

S&P Global Ratings has raised its economic growth forecast for the Philippines this year, citing reduced global trade uncertainty following the easing of US-China tariffs, as well as benign inflation that gives the Bangko Sentral ng Pilipinas (BSP) space to resume monetary easing.

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In its latest Asia-Pacific Economic Outlook, S&P now expects Philippine gross domestic product (GDP) to expand by 5.9 percent in 2025, up from its earlier projection of 5.7 percent.

However, this is still below the government’s six to eight percent target for the year.

It also sees one more 25-basis-point rate cut by the BSP, bringing the policy rate to five percent by year-end from the current 5.25 percent level.

The credit watcher said that while the broader region faces external headwinds including elevated US tariffs, weak Chinese imports and global uncertainty, economies like the Philippines that are less dependent on exports are better positioned to withstand the drag on growth.

“Domestic demand resilience is particularly relevant in limiting the economic slowdown in economies less exposed to goods exports such as India and the Philippines,” S&P said.