MANILA, Philippines — A prolonged war in the Middle East, coupled with climate-related shocks, is expected to weigh on the country’s economic growth, prompting the Asian Development Bank (ADB) to trim its growth outlook.
The Manila-based lender, in its September Asian Development Outlook (ADO), cuts its gross domestic product (GDP) growth outlook for the country to 3.3 percent this year, down from the previous forecast of 3.8 percent. This is below the 3.5 to 4.5 percent target of the government for the year.
“The economy continues to feel the impact of the Middle East conflict, but business indicators point to expected improvements in economic activity, with the industry sector still looking to expand next year,” ADB Philippines Country Director Andrew Jeffries said.
It also revised its outlook for next year downward to 5.1 percent from 5.3 percent.
