2026.10.1503:24:45UTC+00Philippine Peso Slides to Record Low

The Philippine peso weakened to about 63 per US dollar in mid-October, marking a new record low as concerns over the country’s economic outlook deepened. The IMF warned that the Philippines is on track to post the fifth-slowest growth rate in Southeast Asia this year, forecasting GDP expansion of 3.4%. Growth is then expected to pick up to 4.4% in 2025, but still face headwinds from subdued investment and persistently high inflation.

Overall economic momentum has remained weak, with the energy shock linked to the conflict in the Middle East compounding the lingering impact of the flood control scandal. The IMF also projected that the unemployment rate will gradually decline to 5.2% by 2027, although this would still be above its previous forecast of 4.6%.

The peso’s continued depreciation has intensified pressure on the central bank to act. Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that further interest rate hikes are becoming increasingly likely as policymakers seek to stabilize the currency.