MANILA (Reuters) - The&nbsp;Philippine&nbsp;economy is poised to expand&nbsp;faster&nbsp;than&nbsp;expected&nbsp;this&nbsp;year, albeit still seen to post a slowdown versus 2022,&nbsp;thanks to resilient domestic demand despite high inflation and tight fiscal conditions, the&nbsp;World&nbsp;Bank&nbsp;said on Wednesday.
The&nbsp;World&nbsp;Bank&nbsp;sees the&nbsp;Philippines' gross domestic product (GDP)&nbsp;growing 6.0% this&nbsp;year, upgrading its previous forecasts of 5.4% in December and 5.6% in April. It retained its&nbsp;growth forecasts at 5.9% for both 2024 and 2025.
"Despite the weak external conditions, the strong domestic demand will drive the&nbsp;growth of the economy this&nbsp;year,"&nbsp;World&nbsp;Bank&nbsp;Senior Economist, Ralph Van Doorn, said in a virtual press conference.
Consumption will be supported by better employment, steady remittances, and better consumer sentiment, he said.
The Southeast Asian nation's&nbsp;GDP&nbsp;rose by 6.4%&nbsp;year-on-year&nbsp;in the first quarter, with the&nbsp;Philippine&nbsp;government targeting 6.0%-7.0%&nbsp;growth for the entire&nbsp;year.
However, downside risks include the possibility of higher-than-expected&nbsp;global inflation, tighter global financial conditions, and an escalation of geopolitical tensions, Van Doorn said.
Domestically, the threat of the El Ni&ntilde;o weather pattern and supply bottlenecks are key risks, he added.
The&nbsp;World&nbsp;Bank&nbsp;said the government should address inflationary pressures through both monetary and non-monetary measures, increase revenue, implement investments reforms, and shift to more sustainable energy sources.
Philippine&nbsp;annual inflation eased for the fourth straight month in May to 6.1%. Headline inflation in the first five months of 2023 averaged 7.5%, still well above the central&nbsp;bank's 2.0%-4.0% target for the&nbsp;year.
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(Reporting by Neil Jerome Morales; Editing by Kanupriya Kapoor)

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Philippine GDP to grow faster than expected this year - World Bank