The International Monetary Fund (IMF) has revised its 2025 growth forecast for the Philippines, lowering it to 5.5% from an earlier projection of 6.1%. The adjustment comes as external developments and uncertainties continue to impact the economy.
In its updated World Economic Outlook (WEO) released Tuesday, the IMF acknowledged that, despite a challenging environment, the Philippines’ growth is expected to remain relatively strong in 2025. Domestic consumption remains the key driver of economic performance, supported by lower inflation and low unemployment, according to an IMF spokesperson.
The 2024 GDP growth was recorded at 5.7%, falling short of the government’s target range of 6% to 6.5% and the IMF’s previous 5.8% forecast. The IMF attributed the downward revision to lower-than-expected growth in the fourth quarter of 2024, along with the impact of higher tariffs on goods exports to the U.S., revisions to trading partners’ growth projections, and financial tightening.
The IMF emphasized that the revised forecast is based on data available as of April 4, 2025, and does not include policies announced after that date. Despite the challenges, the IMF noted that legislative reforms could enhance the implementation of infrastructure projects and attract higher foreign direct investment (FDI).
