The economy is seen to record a faster growth of six percent this year and 6.1 percent in 2025, according to the Economic and Social Commission for Asia and the Pacific (ESCAP) in its latest report.
The growth estimates published in the 2024 Economic and Social Survey of Asia and the Pacific report released yesterday are faster than the 5.6 percent expansion of the country in 2023.
The estimate for this year is in the lower end of the government’s six to seven percent full-year assumption.
However, for next year, ESCAP’s growth projection falls below the Philippine government’s 6.5 to 7.5 percent estimate.
According to ESCAP’s projections, the Philippines will be the second-fastest growing economy in Southeast Asia for 2024, alongside Vietnam and just behind Cambodia (6.2 percent).
For next year, the Philippines is expected to have the third fastest growth in the sub-region, with Vietnam and Cambodia seen to post larger expansions of 6.5 percent and 6.2 percent, respectively.
The report also estimates that the Philippines’ inflation rate will ease to 3.8 percent this year, and even further to 3.5 percent in 2025.
Meanwhile, economic growth in the Asia-Pacific region is projected to remain relatively steady, but below the pre-pandemic trend, at 4.4 percent in both 2024 and 2025.
Uncertain inflation and interest rate trends, and escalation of geopolitical tensions and trade fragmentation are examples of economic headwinds faced by economies of the region, the report said.
