The Philippines cut its growth target to 5.5 percent to 6.5 percent for 2025 from its earlier forecast of 6 to 8 percent by the inter-agency Development Budget Coordinating Committee (DBCC) on Thursday.

But the DBCC sees the economy growing at a pace of 6-8 percent for 2026 to 2028.

In the first quarter, the economy grew at 5.4 percent GDP.,

It also set a band of 2-3 percent for inflation this year but the earlier goal of 2-4 percent.

''The revisions take into account heightened global uncertainties, such as the unforeseen escalation of tensions in the Middle East and the imposition of US tariffs,'' the DBCC said in a statement.

''Despite these headwinds, the DBCC remains vigilant and ready to deploy timely and targeted measures to mitigate their potential impact on the Philippine economy. Moreover, international reserves remain ample providing adequate buffer to help absorb these external shocks,'' it added.

The DBCC sees exports at minus two percent this year from a growth of six percent for 2025. Imports, previously set at five percent, was lowered to 3.5 percent.

Revenues were forecast at 15.9 percent of GDP from the earlier estimate of 16.2 percent.

The budget deficit was set at minus 5.5 percent of GDP from minus 5.3 percent of GDP. DMS