Moody's lists Philippines among fastest-growing economies in Asia 

The Philippines is expected to be one of the fastest growing economies in Asia this year and in 2026, Moody's Ratings said, according to a report by Philippine News Agency.

"We forecast the Philippines’ real GDP to grow by 6.0 percent in 2025 and 2026, as one of the fastest growing economies in Asia," Moody's Ratings said in an outlook released on Wednesday.

Inflation is also expected to remain within the government's 2 to 4 percent target, supporting further policy rate cuts this year.

This is expected to improve domestic consumption and investments, which will further stimulate the economy.

Moody's said the impact of US President Donald Trump's higher tariffs will also likely remain muted.

"Given the country's consumption-led economic model, we expect the impact of higher tariffs on the Philippines under the Trump administration to be muted compared to its regional peers," it said.

According to Moody's, the strong economic growth, stable inflation, and further rate cuts will help drive credit demand and support loan quality.

Moody's maintained its stable outlook for the Philippine banking system.

"Outlook remains stable as strong economic growth and lower interest rates limit asset quality risks and drive credit demand," it said.

Moody's expects overall asset quality to be steady while capitalization is also expected to remain strong.

It also expects profitability to be broadly stable this year and funding and liquidity conditions to remain solid.

Moody's added that the probability of government support will also remain high.

"We expect the government to prioritize systemic stability and provide support for rated banks in times of need," Moody's Ratings said.