Think tank ASEAN+3 Macroeconomic Research Office (AMRO) said the Philippines needs to refine its growth strategy, investing more effectively in a sustainable future braced against climate shocks and equipped with upskilled labor for the age of artificial intelligence (AI).
AMRO noted in a pre-weekend statement the country’s “strong domestic consumption and a stable labor market are driving growth, while inflation has eased below the central bank’s target range.”
Based on the preliminary result of its annual consultation visit to the Philippines early this month, the think tank, however, added that the Bangko Sentral ng Pilipinas should proceed cautiously with further rate adjustments, given the near-zero output gap and potential supply shocks.
The government should also continue balancing fiscal consolidation with development priorities, particularly infrastructure and human capital investment, it said.
