Moody’s Analytics, an international research agency which operates independently of Moody’s Investors Service, said Monday the Philippine economy likely grew 6 percent in the second quarter of 2023.
“We expect Philippine GDP to grow 6 percent year-on-year, slowing from the 6.4 percent pace in the first quarter,” it said in its Asia-Pacific Economic Preview for the week. It did not provide reasons for the slower growth projection for the April-June period.
“Easing inflation and a tight labor market will power household consumption,” it said.
The country’s gross domestic product grew by 6.4 percent in the first quarter, one of the fastest in the Asian region, despite the elevated inflation that impacted consumer spending.
Inflation peaked at 8.7 percent in January 2023 but eased in the succeeding months. Latest data from the Philippine Statistics Authority showed that inflation in July 2023 eased fto a 16-month low of 4.7 percent.
The government is scheduled to release the second-quarter GDP report on Thursday.
The International Monetary Fund earlier raised its 2023 growth forecast for the Philippines to 6.2 from 6 percent made in April 2023, taking into account the strong GDP performance in the first quarter of the year.
The 6.2 percent projection falls within the 6 percent to 7 percent growth forecast announced by the interagency Development Budget Coordinating Committee earlier.
Data showed that GDP grew by a 46-year high of 7.6 percent in 2022 on the back of reinvigorated economic activity on the reopening of the economy to greater normalcy.
The government earlier maintained its growth assumption of 6.5 percent to 8 percent for 2024 to 2028, taking into account the risks posed by El Nino and other natural disasters, global trade tensions and value chain disruptions, among other factors.