The Philippine economy is projected to have expanded by at least 5.8 percent to as much as 6.3 percent in the first quarter, according to Finance Secretary Ralph Recto. This growth rate, if realized, would be slower than the 6.4 percent recorded in the same quarter last year. Recto mentioned that anything higher than 5.5 percent would be considered a win, and achieving 5.8 percent would be one of the highest in the region.
The economic team has become less optimistic about growth prospects due to global trade disruptions and geopolitical tensions. The Cabinet-level Development Budget Coordination Committee has already adjusted GDP expectations to a range of six to seven percent, down from the previous goal of 6.5 to 7.5 percent.
Recto emphasized that inflation remains a major concern and that GDP growth could be higher if inflation is controlled. Inflation rose to 3.7 percent in March, with the average rate reaching 3.3 percent. The Bangko Sentral ng Pilipinas expects the April inflation rate to breach the target of four percent and possibly reach 4.3 percent due to the increased prices of rice and meat, as well as the depreciation of the peso against the dollar.
Despite these challenges, Recto expressed confidence that the economy could still perform well in the upcoming quarters. He highlighted the importance of focusing on improving growth in the second, third, and fourth quarters of the year.
