Philippines struggles with economic growth during its year as ASEAN chair

The Philippines has struggled to meet economic expectations during its term as chair of the Association of Southeast Asian Nations, Fortune reported. The country officially took over the leadership role from Malaysia for the 2026 calendar year. With two months remaining in its term, high energy prices have heavily impacted the domestic economy. [1]

The economic downturn was exacerbated by global events earlier in the year. Fortune reported that the conflict between the United States and Iran, which began in February, left the Philippines as the worst-hit nation in Southeast Asia regarding elevated energy costs. The rising costs have limited the country's efforts to catch up with neighboring economies. [1]

Prior to these setbacks, expectations were high that the chair position would help the nation draw major foreign investments. Fortune noted that the Philippines possesses structural advantages including a young population, a large domestic market, and a strategic geographic location. However, long-standing economic obstacles have kept the country in a cycle of underachievement. [1]

The historical background of the nation includes over three centuries of Spanish rule starting in 1565 and subsequent American administration following the 1898 Spanish-American War. Full independence was attained on July 4, 1946. Post-independence development has faced ongoing challenges from internal insurgencies, corruption, and governance shifts. [6]