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ADB cuts Philippine growth outlook to 6%
The Asian Development Bank (ADB) has reduced the Philippines' 2024 economic growth forecast to 6 percent from the previously projected 6.2 percent due to persistent inflation risks, but expects growth to accelerate to 6.2 percent in 2025.
ADB Principal Country Specialist Cristina Lozano cited extreme weather events impacting agricultural production and increased shipping costs as key factors contributing to inflation.
Despite the slight downgrade, ADB Philippines Country Director Pavit Ramachandran highlighted that the Philippines is still expected to be one of the fastest-growing economies in the region.
Robust domestic demand, particularly consumption and investment, along with resilient service sectors, is driving the country's economic growth.
The ADB projects inflation to decrease to 3.8 percent in 2024, falling within the Bangko Sentral ng Pilipinas' target range, due to moderating global oil price increases and the extension of reduced tariffs on essential food items.
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The International Monetary Fund (IMF) has upgraded its Philippine growth forecast for 2024 to 6.2 percent, an increase from its earlier projection of six percent.
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The Philippines is projected to achieve a growth rate of 6.3 percent in 2024, positioning it among the highest in the ASEAN+3 region, according to the ASEAN+3 Macroeconomic Research Office (AMRO).
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The Philippine Statistics Authority (PSA) revised the country's 2023 gross domestic product (GDP) growth rate downwards to 5.5% from a previous estimate of 5.6%.
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The Development Budget Coordination Committee (DBCC) revised downward the 2024 economic growth target to a range of 6.0 percent to 7.0 percent from 6.5 percent to 7.5 percent, citing the continued slowdown in the global economy, El Nino, and high interest rates.
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Presidential Adviser for Investment and Economic Affairs Frederick Go stated that the Philippines' decision to lower its GDP growth targets will not affect investor confidence.
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