PH economy to grow by 7.1% in Q1
MANILA, PHILIPPINES — The Philippine economy is forecasted to grow by 7.1% in the first quarter of 2023, supported by the manufacturing sector, expectations of higher infrastructure spending, and easing inflation.
In its latest Market Call report, the First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) Capital Markets Research explained that the S&P Purchasing Manager’s Index for the manufacturing sector showed continued expansion.
Employment is also expected to have improved in February, while several ongoing PPP (public-private partnership) projects by the national government could increase infrastructure spending in the country.
While inflation remains a concern, both organizations believe it peaked in January and would continue to ease in the following months.
“While the data do not readily show blinking bright lights, digging a bit beneath the surface does provide [a] sufficient basis for good expansion in Q1 (first quarter) 2023,” FMIC and UA&P said.
The two institutions also said consumer spending and economic growth in Q1 will be supported by the personal income tax cuts and strong remittances from Overseas Filipino Workers (OFWs).
