Maybank has raised its growth forecasts for the Philippines, citing stronger public spending, resilient remittance inflows and services exports that are expected to help cushion the impact of higher inflation and tighter financial conditions.

The investment bank now expects the Philippine economy to grow by 3.5 percent in 2026, up from its previous forecast of 3.3 percent, and by 4.2 percent in 2027, higher than its earlier estimate of 3.9 percent.

Stronger government spending

While Maybank expects elevated inflation and tighter financial conditions to weigh on private consumption and investment, it believes stronger government spending and steady external inflows will continue to support economic activity.

Maybank also maintained a positive outlook on Philippine equities, citing attractive valuations and improving structural fundamentals despite near-term macroeconomic headwinds.

The bank expects infrastructure investments, artificial intelligence-related opportunities and ongoing reforms at the Philippine Stock Exchange (PSE) — including efforts to improve market liquidity and a strong pipeline of initial public offerings — to support earnings growth and help drive a re-rating of Philippine stocks.

Compelling long-term opportunities

“Amid an increasingly complex global environment, the Philippines’ resilient economy, strong domestic consumption and dynamic corporate sector continue to offer compelling long-term opportunities. As ASEAN’s leading investment banking franchise, we are well positioned to support the country’s growth ambitions through capital markets expertise, strategic advisory services and access to international investors,” he added.

Maybank also revised its growth outlook for the broader ASEAN region upward, raising its ASEAN-6 GDP growth forecast to 4.7 percent from the 4.5 percent projected in March, while maintaining its 2027 forecast at 4.7 percent.

The upgraded outlook was announced during Invest ASEAN, Maybank Investment Banking Group’s flagship investor conference held in Singapore on 7 to 8 July, which brought together nearly 200 institutional investors and prime brokerage clients managing a combined $23 trillion in assets under management.