The Philippine economy is expected to post faster growth this year and the next on the back of slowing inflation, stronger and broad-based domestic demand and higher public investment, according to a new report released by the Asian Development Bank (ADB) Thursday.
ADB’s flagship economic publication Asian Development Outlook (ADO) April 2024 forecasts Philippine economic growth at 6.0 percent this year, further picking up pace at 6.2 percent in 2025 following an expected easing of monetary policy after a series of rate hikes from 2022 until October 2023.
The Philippines will continue to be among the fastest growing economies in Southeast Asia this year and the next, based on the report.
Severe weather events such as a prolonged El Niño dry weather episode and possible strong typhoons later in the year due to the La Niña phenomenon could result in inflation pressures. A sharper slowdown in major advanced economies, heightened geopolitical tensions, and higher-than-expected global commodity prices could also weigh on growth, the report said.
“The Philippines’ growth momentum is picking up speed, driven by the government’s efforts to improve budget execution, mobilize additional revenue, and pursue reforms to boost the investment climate. Investments on large public infrastructure projects, as well as much needed social services, will boost government expenditures and bode well for the economy in the long run,” said ADB Philippines country director Pavit Ramachandran.