BSP: Economy to recover in 2026

MANILA, Philippines —   Economic growth is expected to be below target this year, but is likely to recover by next year and settle within the government’s target by 2027, the Bangko Sentral ng Pilipinas (BSP) said.

The Philippines’ economic prospects and monetary policy were tackled during President Marcos’ meeting with BSP Governor Eli Remolona last Wednesday at Malacañang.

“The President reaffirmed his commitment to safeguarding economic stability and creating conditions for sustained, broad-based growth for all Filipinos,” the Presidential Communications Office (PCO) said in a statement yesterday.

“Although there was poor growth in 2025, the economy is expected to recover by 2026 and return to the government’s target range by 2027,” it added.

The economic team has set an economic growth target of 5.5 to 6.5 percent for this year and six to seven percent for 2026.

The Philippines’ gross domestic product posted a slower-than-expected growth of four percent in the third quarter, a development tied to a slowdown in government spending and the impact of recent typhoons.

Earlier this week, the BSP said high-frequency indicators point to moderating domestic demand, with the GDP seen “to fall slightly below the government’s growth targets for 2025 and 2026, before rising to within target by 2027.”

Despite the slower growth, the economic planning and development department remains optimistic about the country’s economic prospects, citing its low inflation, manageable fiscal deficit and public debt, stable currency and external balance, and stable banking sector.

 Inflation is forecast at 3.1 percent for next year and 2.8 percent for 2027.