Philippines sees economy slowing, but ‘comparatively strong’ in 2023

PHILIPPINE economic growth may ease next year after a likely expansion of more than 7 per cent this year as global risks linger, but it will remain resilient, a top official said on Sunday (Nov 27).

“We may slow down, given still elevated external headwinds and internal challenges, but the economy will remain comparatively strong in 2023,” Economic Planning Secretary Arsenio Balisacan said in a tweet.

The government is aiming for yearly gross domestic product (GDP) growth of 6.5-8 per cent between 2023 and 2028.

The economy would likely grow above the government’s 6.5-7.5 per cent growth target for 2022, Balisacan said on Nov 10, following a faster-than-expected 7.6 per cent annual expansion in the third quarter, underpinned by pent-up domestic demand.

That followed GDP growth rates of 7.5 per cent in the second and 8.2 per cent in the first quarter, boosted by the full reopening of the economy as the government continuously lifted Covid-19 restrictions, and despite soaring inflation.

The world’s largest investment banks expect global economic growth to slow further in 2023 following a year roiled by the Ukraine conflict and soaring inflation, which triggered one of the fastest monetary policy tightening cycles in recent times. REUTERS