ADB keeps 6% PHL growth outlook
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THE Asian Development Bank (ADB) kept its 6% growth forecast for the Philippines this year, although it expects global headwinds, elevated inflation and tighter monetary policy to weigh on the outlook.
In its Asian Development Outlook (ADO) April 2023 Update, the ADB maintained its Philippine gross domestic product (GDP) growth forecast at 6%, which would make it the second fastest-growing economy in Southeast Asia. This is within the government’s 6-7% full-year target.
“The Philippines will grow at its potential this year and next year and is on track toward its goal to become an upper middle-income country,” ADB Philippines Country Director Kelly Bird said in a briefing on Tuesday.
Mr. Bird noted there is still strong growth momentum coming in from 2022, when the economy grew by 7.6%.
“It is also one of the highest growth rates in Asia-Pacific (as) domestic demand continues to remain strong,” he said.
The ADB’s growth forecast for the Philippines is second only to Vietnam (6.5%), and also above the 4.7% growth outlook for the Southeast Asia region.
For 2024, the ADB sees the country to expand by 6.2%. This is below the government’s 6.5-8% target for next year.
The ADB’s 6.2% forecast for the Philippines in 2024 is also the second-fastest among Southeast Asian economies, following Vietnam’s 6.8%. This is above the ADB’s 5% outlook for Southeast Asia next year as well.
“Growth is expected to remain strong, albeit slowed by global headwinds, high inflation, and tighter monetary policy… Household spending will be buoyed by rising employment and steady remittances from Philippine workers overseas,” the ADB said in its ADO update.
The unemployment rate improved to 4.8% in January from 6.4% a year ago. Also in January, cash remittances from overseas Filipinos rose by 3.5% to $2.76 billion in January.
“Key to sustaining a strong growth momentum is keeping public infrastructure spending at levels above 5% of GDP, as the…
BusinessWorld
2023-04-04 12:34:13
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