Upgraded but underperforming: Philippines’ growth lags behind

Those strains have left the Philippines looking like a regional laggard. Bank of America is forecasting gross domestic product growth of 2.5 per cent for 2026 – tying with Thailand for the slowest pace in the region – even as it raised its overall Asean growth forecast to 5 per cent, up from 4.7 per cent at the end of the second quarter.

“The Philippines is expected to see a sharp slowdown relative to 2025,” the bank said in its September report, comparing that to Singapore’s projected 5.1 per cent growth, Malaysia’s 5.2 per cent, Indonesia’s 5.3 per cent and Vietnam’s 8.2 per cent.