ADB maintains growth 2024, 2025 growth forecasts for Philippines

The Asian Development Bank (AD) has maintained its economic growth outlook for the Philippines this year and next amid expectations of easing inflation which would support consumption and investment activities.

In the July edition of its flagship publication, Asian Development Outlook (ADO), the ADB said the country’s gross domestic product (GDP) growth forecast remains at 6.0% for 2024 and 6.2% for 2025.

These are the same growth rates it forecast for the Philippines for this year and next in the April edition of ADO.

“Moderating inflation and expected monetary easing in the second half of 2024 will support household consumption and investment,” the multilateral lender said.

The ADB’s forecasts fall within the lower end of the Marcos administration’s GDP target range of 6% to 7% for the year and 6.5% to 7.5% for next year.

The lender cited the Philippines GDP growth rate of 5.7% in the first quarter of 2024 on the back of “domestic demand, along with a recovery in merchandise exports.”

“Household consumption growth, while below last year’s level, remained the main contributor supported by low unemployment and remittances from overseas workers,” it said.

The ADB said public infrastructure spending continued to lift growth during the period, while “merchandise exports rebounded, particularly electronic products (about 60% of total exports), while services exports remained buoyant, including tourism and business process outsourcing.” — RSJ, GMA Integrated News