GDP growth seen to underperform target

MANILA, Philippines — Singapore-based OCBC Bank slashed its growth outlook for the Philippines this year, saying domestic demand remains the “principal drag” due to higher inflation and weak government spending.

In a note, the OCBC Group Research said gross domestic product (GDP) may grow 3.2 percent year-on-year in 2026, down from its previous projection of 3.8 percent.

READ: IMF, ADB slash PH growth forecast

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If the forecast holds, this year’s expansion would mark a slowdown from the 4.4-percent growth in 2025. The estimate also falls short of the Marcos administration’s downwardly revised growth target of 3.5 percent to 4.5 percent.FEATURED STORIES