Philippine economy forecast down to 5.5% growth

The Philippine economy is forecasted to grow by 5.5 percent this year, down from a previous estimate of 6.3 percent, due to global trade uncertainties and domestic challenges.

Unicapital Securities Inc.'s equity research analyst Peter Louise Garnace cited the impact of US tariffs on Philippine goods as one of the key factors affecting growth.

Despite the downgrade, Unicapital expects the Philippines to remain the second fastest-growing economy in Southeast Asia after Vietnam.

Strong household consumption, government spending, private investments, tourism, and steady remittances are expected to support economic growth despite export challenges.

Former trade undersecretary Rafaelita Aldaba highlighted the need for diversifying trading partners and reducing business costs to mitigate risks from US tariffs on semiconductors.