ECONOMIC GROWTH. High-rise buildings dot the skyline of Quezon City on May 9, 2024, as viewed from the Eton Centris Building. The ASEAN+3 Macroeconomic Research Office on Tuesday (July 16, 2024) forecast the Philippine economy to grow by 6.1% in 2024. (PNA photo by Ben Briones)
MANILA – The Philippine economy is projected to grow by over 6 percent in 2024 and 2025, making the country the second fastest-growing economy in the region.
In its latest quarterly update of the ASEAN+3 Regional Economic Outlook (AREO) released on Tuesday, the ASEAN+3 Macroeconomic Research Office (AMRO) said Philippine economic growth is projected to hit 6.1 percent this year.
Philippine economic growth is projected to accelerate to 6.3 percent next year.
AMRO's latest forecast was lower than the 6.3 percent and 6.5 percent earlier projected for 2024 and 2025.
The report, however, showed that the projection is the second highest in the region, next to Vietnam's 6.3 percent and 6.5 percent economic growth forecast for 2024 and 2025.
In a virtual briefing, AMRO chief economist Hoe Ee Khor said economic growth projections of many of the countries in the region are downgraded due to the weaker-than-expected recovery in the external sector.
"We have shaved it down from 6.3 to 6.1 [percent], which is in light of the data that comes out in the first half of the year, so as I said before, we are always looking at the data very closely and reviewing them," said Khor.
"I think the Philippine growth is pretty robust and will pick up next year to 6.3 percent. So this is well within the official range of 6-7 percent while we are on the low side. But we will look at the data closely and we may revise it up in the second half if the data show that the economy become more strongly," he added.
Inflation, meanwhile, is projected to settle at 3.3 percent this year, lower than AMRO's earlier forecast which was 3.6 percent.
For 2025, headline inflation is forecast to decelerate further to 3.1 percent.
Khor said that in the case of the Philippines, inflation has finally come off the peak within the 2 to 4 percent target.
Growth in 2024, 2025
The International Monetary Fund (IMF), meanwhile, also expects the Philippines to grow by more than 6 percent this year and in 2025.
In its July 2024 World Economic Outlook Update released on Tuesday, the IMF retained its 2024 Philippine economic growth projection at 6.0 percent.
The 6.2 percent 2025 economic growth forecast was also retained.
IMF Mission Chief Elif Arbatli Saxegaard earlier said growth will be driven by stronger consumption demand, higher public and private investment, and a recovery in exports.
An IMF team led by Saxegaard held meetings in Manila last June 4 to 10 to discuss recent economic and financial developments and the outlook for the Philippine economy.
For 2025, Saxegaard earlier said drivers of growth include the continued pick-up in domestic demand, investment, and consumption. (PNA)
