The Philippine economy is forecast to grow by just 3.6 percent this year, from an earlier outlook of 4.2 percent, the eurozone continued to slip into a recession and the US economy remained stagnant, the Hongkong and Shanghai Banking Corp. (HSBC) said in a report.

"The Philippine faces more limited spill-over risks and has some room to adjust policy, although the balance sheet ranking is not the best," HSBC said in its Asean-5 report released on Tuesday.