World Bank slashes Manila’s growth outlook as Middle East conflict threatens remittances, reserves

[MANILA] The World Bank has issued a stark recalibration of the Philippines’ economic trajectory after slashing its 2026 growth forecast to 3.7 per cent from 5.3 per cent, a move that signals the country’s acute vulnerability to the deepening Middle East conflict.

The multilateral lender flagged the geopolitical crisis as the primary threat to the Philippines’ consumption-led economy, but more factors are starting to indicate that the country is entering its most rigorous stress test since the pandemic.

The World Bank’s revised projection is the lowest in contrast to the International Monetary Fund’s 5.6 per cent and the Asian Development Bank’s recently announced 4.4 per cent estimates.