A major business group is bullish on Philippine economic prospects and expects a gross domestic product expansion of nearly 7 percent in 2023.
Philippine Chamber of Commerce and Industry president George Barcelon said his group agreed with the Department of Finance’s economic growth projection of 6 percent to 7 percent.
“Given the stability in oil price and China’s positive outlook of 5 percent growth due to its reopening, the figure of closer to 7 percent is attainable,” Barcelon said Monday.
PCCI said the economy would sustain a healthy pace in the first half. The group said that despite the continuous interest rate hikes mirroring the US and European Union’s action to mitigate inflation, remittances and the rebounding local economy could weather the challenges.
It said, however, the government should find solutions on high food prices which heightened the clamor for big wage adjustment that could lead to even higher inflation.
“This is a vicious cycle that could stunt business and negatively impact the competitiveness of the export sector. As such, the outlook on both job creation and sustainability for the year may encounter head winds,” Barcelon said.
The group said the mitigation of COVID-19 and the opening of physical schooling would add to economic activities.
It noted the government’s plans to continue infrastructure spending and massive housing projects for the homeless to boost the economy.
The group said that based on global trends, travel and leisure business were coming back strongly. The recent trip of the President Ferdinand Marcos Jr. to China gained support for Philippine tourism and agricultural sectors, it said.
“Let’s be positive in our outlook and continue the good efforts in extending support to our chambers,” Barcelon said.