The Philippine economy is facing a challenging outlook, as commodity-related inflationary pressures compound a growth deceleration, with GDP growth expected at 3.4 percent in 2026 before recovering to 5.1 percent next year. Risks to growth are tilted to the downside. Although inflation rose well above the Bangko Sentral ng Pilipinas (BSP) target this year, monetary tightening has kept inflation expectations anchored, and inflation is expected to move towards the target range next year. [...]