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MANILA, Philippines – The Philippine economy is unlikely to fall into full-blown stagflation as a rebound in infrastructure spending is seen keeping growth in positive territory in the second half of the year, according to economists at the University of Asia and the Pacific (UA&P).
In their latest “The Market Call,” UA&P economists said growth could recover to around 5 percent in the second half on the back of increased government spending, while inflation is expected to remain elevated but will likely not reach double-digit levels.
READ: ADB cuts 2026 PH GDP growth forecast to 4.4%
Fears of stagflation have been simmering after first-quarter economic growth slowed sharply to 2.8 percent, while inflation accelerated to 7.2 percent in April. Unemployment, meanwhile, eased to 5 percent, though still high.
