The World Bank on Monday slashed its 2023 growth forecast for the Philippines to 5.6 percent from the 6-percent estimate it made in June, taking into account the elevated inflation and global economic slowdown.
“GDP growth in the Philippines is projected to moderate to 5.6 percent in 2023 from 7.6 percent in 2022 due to still-elevated inflation, tight financial conditions and a weak external environment,” said Ergys Islamaj, WB senior economist for East Asia and Pacific during the bank’s East Asia and Pacific Economic Update online briefing.
Islamaj said growth was projected to edge up to 5.8 percent in 2024, although slower than the previous estimate of 5.9 percent.
World Bank East Asia and Pacific chief economist Aaditya Mattoo said the big concern for most of the economies in the region is the slowing global growth.
“So our projections [for the Philippines] reflect the slowing global growth [that] has slowed down financial conditions,” Mattoo said.
“The good news for the Philippines is we expect the economic activity to be supported by domestic demand to be led by private consumption and decelerating inflation,” Mattoo said.