The Asian Development Bank (ADB) on Friday slashed its growth projection for the Philippines in 2023 amid the high inflation and external headwinds.
In the September edition of its flagship publication, the Manila-based lender said the country’s gross domestic product (GDP) growth is projected to be 5.7% in 2023, a downgrade look from the 6% forecast last month.
For 2024, the ADB is optimistic for a 6.2% GDP for the country.
According to the multinational lender, the looming impact of El Niño, potential weather disturbances, pressures from global commodity prices, and price hikes in transport and fuel contribute to taming inflation.
“Philippine economic growth is expected to moderate this year due to inflation and global headwinds before picking up in 2024 as price pressures ease,“ said ADB Philippines Country Director Pavit Ramachandran,” said Pavit Ramachandran, ADB’s country director in the Philippines.
"Public investment and private spending fueled by low unemployment rate, sustained increase in remittances from Filipinos overseas, and buoyant services including tourism will support growth," he continued.
"The government's large infrastructure projects should further stimulate consumption, boost jobs, and spur more investment."
