Bank of America: Philippine GDP Growth to Slow, Inflation to Rise

By EC Assets · Published 7 May 2026 · Updated 28 May 2026

Bank of America has lowered its economic growth projections for the Philippines. The firm forecasts a slowdown in the nation's gross domestic product (GDP) growth. Concurrently, it anticipates an acceleration in inflation. Bank of America now projects the Philippine economy will expand by 5.9% in 2024. This marks a downward revision from its earlier forecast of 6.5%. The new forecast is also lower than the actual 5.6% GDP growth recorded in 2023. Inflation is expected to average 4% in 2024, an increase from a previous estimate of 3.3%. The Philippine central bank's inflation target range is 2% to 4%. In 2023, average inflation stood at 6%. January saw inflation at 2.8%, which was the slowest pace in three years. The Philippine central bank has maintained its policy rate at 6.50% since October 2023. This rate represents a 16-year high. Governor Eli Remolona stated that the central bank does not necessarily move in lockstep with the U.S. Federal Reserve. Bank of America expects the Philippine central bank to implement 100 basis points of rate cuts in 2025. This would bring the policy rate down to 5.50% by the end of next year. This article is intended for informational purposes only. It does not constitute investment advice.