The World Bank reports that the Philippine economy slowed in 2025, declining from 5.7 percent growth in 2024 to 5.1 percent. The drop of 0.6 percentage points reflects weaker momentum in several key sectors.
World Bank Philippines Director Zafer Mostafaglu said the slowdown is linked to lower foreign direct investment, weather disruptions including storms and flooding, and the controversy surrounding flood control projects. He urged the government to accelerate reforms and improve systems to help the country recover from the scandal’s economic effects.
The report also highlighted a significant decline in tourist arrivals compared with previous years, further dampening growth prospects. Tourism has traditionally contributed to jobs and revenue in local communities.
World Bank Senior Economist Jaffar Al-Rikabi emphasized that sustainable long-term growth depends on ensuring low- and middle-income regions continue to grow faster than the National Capital Region, as they have over the past decade. He added that high-potential urban areas, or urban corridors, should be harnessed as engines of jobs and productivity that provide benefits across the country.
The World Bank’s findings underscore both the short-term economic challenges and the potential for broader regional development if reforms are effectively implemented.
