The Philippines is seen to post a slower growth in 2023, according to a report released yesterday.
However, strong domestic demand is expected to continue driving expansion for the period.
According to the United Nations World Economic Situation and Prospects 2023, the Philippines is projected to post a growth of five percent this year, even lower than the government’s growth assumption of six to seven percent for 2023.
This is coming from a strong 7.6 percent growth in 2022, amid global headwinds such as the slowdown in major advanced economies.
The report showed the country is expected to post a faster growth of 6.1 percent next year.
“There’s still a fairly good output for the country as a whole. What supports the Philippines’ performance going forward is that there is still a very strong domestic economy which allows growth to be supported from that angle, even in a climate of fairly strong external pressure, which is common with the rest of the developing world because of the outlook for the developed world,” said Shuvojit Banerjee of ESCAP’s macroeconomic policy and financing for development division, in a virtual briefing.
“What is supporting the Philippine economy has been strong domestic demand led by… supportive government policies, and that is likely to be what will sustain the quite positive growth outlook for the country going forward,” Banerjee added.
Banerjee, however, pointed out the outlook is all very much dependent on certain global pressures.
“It’ll depend on the outlook for food and energy prices globally. But I think the Philippines especially has a great deal of domestic support to rely on,” he said.
