ADB Maintains Growth Forecast for Philippine Economy at 6%
The Asian Development Bank (ADB) has kept its growth forecast for the Philippine domestic product at 6 percent for this year and 6.2 percent for next year. This is due to the steady pace of recovery from the pandemic in the region.
According to the ADB’s Asian Development Outlook 2023 report, domestic demand and services activity are driving growth in the region, including the Philippines. The country is also benefiting from a strong recovery in tourism.
The ADB noted that the Philippine economy grew by 6.4 percent in the first quarter of 2023, driven by robust investment and private consumption. Rising employment, expanding production and retail sales, and brisk private and public construction also contributed to the growth.
However, merchandise exports declined, although this was partially offset by an expansion in service exports. The ADB highlighted that tourism has bounced back, and business process outsourcing and information services have experienced strong growth.
Economist Victor Abola, from the University of Asia and the Pacific, expects a 5.6-percent growth in the second quarter and a more robust recovery in the third and fourth quarters. He predicts an acceleration to 6.5 percent for the full year 2024, citing infrastructure projects and the housing program of President Marcos as contributing factors.
The ADB’s maintained growth forecast aligns with the International Monetary Fund’s projection of 6 percent growth for the Philippine economy in 2023 and 5.5 to 6 percent growth in 2024.
