BMI, a unit of Fitch Solutions, said it expects the Philippine economy to grow faster in the coming quarters after the gross domestic product expanded 5.7 percent in the first three months.
BMI said the first-quarter performance was consistent with its 6.2-percent full-year growth forecast for the Philippines.
It said the unemployment rate eased from 4.5 percent in January to 3.9 percent in March, which should support household consumption.
“Labor market conditions have tightened, and we still expect looser monetary policy to lift economic activity over the coming quarters,” BMI said.
It said while investments and household consumption slowed in the first quarter from high inflation and high interest rates, they are expected to rebound in the second half of 2024. “We expect the central bank to start easing in July, which would bring some small measure of relief,” it said.