First Metro sees GDP growing 6% this year

First Metro Investment Corp., the investment banking arm of the Metrobank Group, expects the Philippine economy to grow by 6 percent in 2023, slower than its projection of 7.3 percent in 2022, amid a volatile environment characterized by slower global growth, higher interest rates and elevated inflation.

First Metro president Jose Patricio Dumlao said in an online economic and capital markets briefing on Wednesday the economy would grow at a slower rate than in 2022.

“Amidst the unexpected challenges in the global economy in the past year, the Philippines pulled through and grew 7.7 percent [in the first nine months] driven by strong domestic demand,” Dumlao said.

“This year, we continue to anticipate external headwinds—slower global growth, interest rates and inflation will remain elevated and volatility will persist – which will temper growth. In the face of all this, the economy will remain resilient and is expected to expand by 6.0 percent,” Dumlao said.

He said the GDP growth would be fueled by robust domestic demand. The reopening of the economy, removal of restrictions on people’s mobility and business operations are expected to push household consumption, employment, services and government spending. Julito G. Rada