Economic
BofA: Slowing demand to hit Philippines growth
Bank of America warns that weakening domestic demand, lower private consumption, and reduced investment will keep the Philippine economy expanding below its potential over the next two years.
Bank of America (BofA) forecasts subdued economic growth for the Philippines over the next two years, citing sluggish domestic demand, declining private consumption, and falling investment as the main drags. In its Asia Economic Weekly report, the bank projects GDP growth of 4.6 percent in 2026 and five percent in 2027, which is below the country's estimated sustainable growth rate of 5.5–6.0 percent. The report notes that growth momentum slowed markedly toward the end of 2025, with GDP expanding by only three percent year‑on‑year in the final quarter, yielding an annual average expansion rate of 4.4 percent. BofA expects this modest growth to continue into the first half of 2026 as consumer and investor confidence recover slowly, driven by weaker household spending, reduced government outlays relative to the election‑driven outlays of 2025, and waning capital investment. The bank also observes that monetary easing by the Bangko Sentral ng Pilipinas (BSP) is nearing its limit, pointing to an increased reliance on fiscal policy to support growth.
- Status
- active
- Location
- Philippines
- Date added
- 2026-03-25 19:38 UTC
- Added by
- dinaasiaapdrmis
- Last updated
- Source
- https://www.philstar.com
- Source published dsate/time
- Not provided
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