The World Bank has sharply lowered its economic growth projections for the Philippines, citing a combination of a global oil price spike and prolonged domestic policy uncertainty.
The lender warned that these dual pressures are slowing one of Southeast Asia's fastest-growing economies, with downward revisions applied to forecasts for both 2026 and 2027.
The downgrade underscores the vulnerability of emerging markets to external energy shocks.
As global oil prices remain elevated, import-dependent economies face mounting inflationary pressures and widening current account deficits.
The World Bank's assessment highlights how energy market volatility is translating into tangible macroeconomic headwinds for regional growth.
Compounding the external shock is a domestic environment marked by policy unpredictability.