THE World Bank on Tuesday, Oct. 7, 2025, retained its 2025 and 2026 Philippine economic growth projection, noting that structural reforms would help boost growth.
In its East Asia and Pacific Economic Update for October, the World Bank projected the Philippine economy to grow by 5.3 percent this year and 5.4 percent in 2026.
The international lender’s latest growth forecast for the Philippines outpaced that of China, Indonesia, Malaysia and Thailand.
According to the World Bank, the Philippines is projected to record slightly higher growth in 2026, driven by domestic demand and a modest global recovery to offset the impact of higher US tariffs.
“(The) Philippines will benefit from robust domestic demand, supported by easing inflation, lower interest rates and strong labor markets. Growth will also be sustained by public infrastructure investment exceeding five percent of GDP (gross domestic product) and private investment spurred by the reforms,” it said.
Recent structural reforms will also help improve economic efficiency and support growth.
In the case of the Philippines, recent reforms are expected to further enhance investment and productivity by opening key enabling sectors to greater competition, including logistics and telecoms and renewable energy.
The report said the Philippines is also seeking to build the capabilities of the labor force through the newly enacted Enterprise-Based Education and Training framework, which supports reskilling and upskilling.
“Sustaining this momentum will require effective implementation of these reforms, complemented by efforts to improve the business environment (it takes 106 days to register a foreign firm) and a strong commitment to fiscal consolidation to safeguard the fiscal space needed to maintain infrastructure investment without compromising macroeconomic stability,” the World Bank said. / PNA