AMRO cuts PH economic growth forecast to 6.1% for 2024

The ASEAN+3 Macroeconomic Research Office (AMRO) has lowered its Philippine economic growth forecast to 6.1% for 2024 and 6.3% for 2025, citing a weaker-than-expected external sector recovery.

This projection still positions the Philippines as the second fastest-growing economy in the ASEAN region.

The Philippine economy grew 5.7% in the first quarter of 2024, falling short of the government's 6% to 7% full-year target.

Despite the reduced estimates, AMRO still considers the projected growth a strong performance for an emerging market.

AMRO Chief Economist Hoe Ee Khor noted that the growth forecasts for many countries in the region were trimmed due to the slowing external demand.

He added that the forecasts might be revised upward in the second half of the year if economic data shows stronger growth.

Infrastructure gaps and limited fiscal space due to pandemic spending were also cited as factors weakening Philippine growth.