The United Nations Department of Economic and Social Affairs (UN-DESA) projects the Philippines’ real gross domestic product (GDP) to grow by 5.7 percent in 2026, marking another downward revision for the economy in the wake of the corruption scandal.

“In the Philippines, low inflation, robust labour market conditions, and steady remittance inflows have buoyed consumer spending,” UN-DESA said in its World Economic Situation and Prospects 2026 report released today.

On Tuesday, Eli M. Remolona Jr., Governor of the Bangko Sentral ng Pilipinas (BSP), said 2025 GDP growth would fall to 4.6 percent, well below the national target range of 5.5 to 6.5 percent, amid persistent governance issues linked to the flood control scandal.

His remarks followed the government’s revised economic growth target of 5 to 6 percent for 2026, announced by Arsenio Balisacan, Secretary of the Department of Economy, Planning, and Development (DEPDev), during a Malacañang press conference on Monday.

With the release of its latest report, UN-DESA became the most recent international institution to downgrade its growth outlook for the Philippines, cutting its 2026 projection from 6.2 percent last year to 5.7 percent.

Other multilateral institutions—including the Asian Development Bank, International Monetary Fund, and World Bank—as well as analytics firms Standard & Poor’s, Moody’s, and BMI, have likewise lowered their GDP forecasts for the Philippines for 2025 and 2026.

Meanwhile, UN-DESA cut its 2026 inflation projection for the Philippines to 2.3 percent, down from 3.0 percentpreviously. The Philippine Statistics Authority reported that headline inflation averaged 1.7 percent in 2025, also below the government’s 2 to 4 percent target range.

Lower inflation implies a slower pace of price increases, helping preserve purchasing power for Filipino households. Remolona, Balisacan, and Frederick Go, Secretary of the Department of Finance, have all welcomed the subdued inflation figures.

“Despite global headwinds and domestic challenges, the Philippine economy has remained resilient against inflationary pressures due to the government’s timely and targeted interventions,” Balisacan said.

“This record-low inflation in 2025 reflects the effectiveness of our collective efforts under the strong leadership of President Ferdinand R. Marcos, Jr.,” Go said.

UN-DESA continues to classify the Philippines as a developing economy, referring to countries that are still advancing toward higher income levels, stronger institutions, and broader social and economic development.

Go has previously said that the government remains committed to elevating the Philippines to upper-middle-income status by 2026, noting that the country is just $46 per person short of the World Bank threshold.