Philippines

The Philippine economy has achieved successful disinflation on the back of a well-calibrated monetary policy tightening cycle and concerted government measures to reduce food prices. Domestic demand, underpinned by public spending, has been resilient, supporting headline growth. The Philippines is affected by the recent increase in global trade barriers, though its direct exposures remain relatively limited, playing a mitigating role. Growth is expected to remain robust but below its potential in the near term amid heightened external challenges, while inflation is expected to remain muted. Risks are tilted to the downside, stemming from rising global trade barriers and policy uncertainty, while natural disasters continue to pose important macroeconomic risks.