The Philippine economic growth is anticipated to maintain a promising performance despite facing a challenging economic and financial environment throughout 2023. Economic managers, such as the Development Budget Coordination Committee (DBCC), assume a Philippine growth rate of 6.5 to 7.5 percent in 2024. The projected growth is expected to be driven by strong private consumption, supported by the expected return of inflation within the target range, falling oil prices, robust public spending, more significant investments lured by the country’s sound macroeconomic fundamentals, investment-grade credit rating, and the implementation of structural reforms, and increased demand for Philippine exports as supply chain bottlenecks ease.
Former Department of Finance (DOF) Secretary Benjamin E. Diokno mentioned that the growth for 2023 is likely to be close to the lower end of the 6.0 to 7.0 percent target. Despite the ongoing geopolitical tensions, the imposition of trade restrictions, and extreme weather events leading to high domestic commodity prices, particularly for rice and fuel.
He optimistically highlighted that most multilateral organizations expect the Philippines to be one of the fastest-growing economies among major Asian countries in 2023 and 2024, even with recent revisions in economic projections.
The PH economic performance grew by 5.9 percent in the third quarter of 2023, bringing the year-to-date growth to 5.5 percent.
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