Capital Economics expects the Philippine economy to grow below the government’s targets over the next three years, citing weak confidence, tight fiscal policy, and the lingering effects of recent economic shocks.
The think tank forecasts gross domestic product (GDP) growth at 3 percent this year, rising to 4.5 percent in 2027 and 5.5 percent in 2028.
It also warned that economic activity remains weak despite easing energy prices and an improving peso.
Capital Economics expects inflation to gradually slow over the next two years but projects the Bangko Sentral ng Pilipinas to raise interest rates once more before considering rate cuts in early 2027.
The report said consumer spending and investment are likely to remain subdued, resulting in a slower-than-expected economic recovery.
Source: PhilNews24 | June 29, 2026
