PHILIPPINE ECONOMY EXPECTED TO REGAIN MOMENTUM IN 2027
The Philippine economy is expected to regain momentum in 2027, with the Asian Development Bank (ADB) projecting 5.1% GDP growth, following an estimated 3.3% expansion in 2026.
The recovery is expected to be supported by continued strength in the services sector, alongside improving activity in manufacturing and public construction. Government spending on infrastructure—including transportation, railways, ports, healthcare, education and agriculture—is also expected to contribute to growth.
Growth Outlook Revised Lower
The ADB has lowered its previous forecasts of 3.8% growth for 2026 and 5.3% for 2027, citing tighter global economic conditions, El Niño, energy disruptions and geopolitical tensions.
Inflation is expected to average 5.9% in 2026 before easing to 4.4% in 2027, potentially providing some relief to households and businesses.
Employment Signals Point to Continued Demand
The employment outlook also shows continued expansion in several sectors. The IT-BPM industry, for example, expects its workforce to reach approximately 1.99 million full-time employees in 2027, up from 1.94 million in 2026—an increase of about 50,000 jobs. IBPAP also projects industry revenues to reach $45 billion in 2027, with revenue growth outpacing workforce growth as companies increasingly adopt AI to augment human workers.
This is consistent with what Career Connect is seeing in the market. Foreign startups are increasingly entering the Philippines and establishing local operations in preparation for 2027. Career Connect is also seeing growing recruitment activity from FinTech companies and professional services firms, creating demand for new pools of specialized talent.
AI-related roles are also becoming more visible across the market. However, based on Career Connect’s current recruitment activity, there has not yet been a drastic decline in overall job demand attributable to AI adoption. Instead, the market appears to be seeing a combination of new AI-related roles and the evolution of existing positions as companies integrate AI into their operations.
Looking Ahead
The ADB expects 2027 to mark a return to stronger economic growth, driven by services, manufacturing, infrastructure investment and easing inflation. The continued entry of foreign businesses, expansion of the IT-BPM sector and emergence of AI-enabled roles provide additional signals of an evolving Philippine employment market.
For businesses, the outlook points toward a potentially more active environment for investment, hiring and expansion as economic activity strengthens.
Source: SunStar Cebu / Philippine News Agency, “ADB expects PH economic growth to regain momentum in 2027,” September 23, 2026.
Additional source: IT & Business Process Association of the Philippines (IBPAP), as reported by GMA News and Philstar regarding 2027 industry revenue and employment projections.
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Career Connect Editorial Team
