Strong domestic demand, sustained investments in social services and vital public infrastructure, and modest inflation will underpin Philippine economic growth this year and the next, according to the Asian Development Outlook April 2025 report.

However, increased uncertainty in global trade and investment policies following the announcement of new U.S. tariffs may impact market sentiment and investment decisions, the report said, noting that geopolitical tensions and weather shocks could also pose challenges.

The growth forecasts were finalized prior to the announcement of new tariffs by the U.S. administration on April 2, so the baseline projections only reflect tariffs that were in place previously, the Manila-based bank said in a press release.