ADB likely to cut PHL growth outlook anew - BusinessWorld Online

People are seen at a public market in Quezon City.Inflation in April rose to 7.2% — PHILIPPINE STAR/MIGUEL DE GUZMAN By Justine Irish D.

Tabile, Senior Reporter GROWTH PROJECTIONS for the Philippines are likely to be revised downward again as the prolonged conflict in the Middle East continues to weigh on economic activity, according to Asian Development Bank (ADB) Country Director for the Philippines Andrew Jeffries.“When we did the Asian Development Outlook in very early April, it had several scenarios including more downside scenarios, but the main scenario was based on what I would call an early stabilization scenario,” he told BusinessWorld in an interview.

“So that was envisioning if this crisis got resolved and things went back to normal within a few months.That obviously has not happened,” he added.

In April, the Philippine-based multilateral lender cut its Philippine gross domestic product (GDP) growth forecast to 4.4% from 5.3% previously projected in December. The revised forecast falls below the government’s 5-6% GDP growth target for 2026 and matches the country’s growth pace last year.For 2027, the ADB expects the Philippine economy to expand by 5.5%, at the low end of the government’s 5.5-6.5% target range.

On April 29, the ADB downgraded its growth outlook and raised inflation forecasts for developing Asia and the Pacific, reflecting the impact of the conflict.The lender now expects the region to grow by 4.7% in 2026 and 4.8% in 2027, lower than its earlier 5.1% forecast for both years.

Meanwhile, regional inflation is projected to accelerate to 5.2% this year and 4.1% next year from the earlier forecasts of 3.6% and 3.4%, respectively.Mr.

Jeffries said inflation in the region could rise as high as 7.4% this year under a severe downside scenario.“Now, the Philippines is being disproportionately negatively affected compared to other countries.

In the Philippines we just saw 7.2% ...