PH projected to register 6.5% Q4 growth despite inflation
The Philippine economy could post a 6.5% growth in the last quarter of 2022 despite inflation expectations, said First Metro Investment Corporation-University of Asia and the Pacific (FMIC-UA&P) Capital Market Research.
In its latest market call report, the local think tank revealed that an expected strong consumer spending would boost the country’s economic growth.
“While inflation above 6 percent may cut into consumer spending, the significant peso depreciation puts more money in the hands of OFW families, BPO workers, and exports and their suppliers,” FMIC-UA&P Capital Market Research stated.
“This should blunt most of the negative impact of inflation and enable the economy to expand by 6.5% in the fourth quarter of 2022. Peak inflation may be at 6.7% by September or October this year,” it added.
Last week, the National Economic and Development Authority (NEDA) said inflation could be controlled by 2024.
NEDA Undersecretary for Policy and Planning Rosemarie Edillon said that the inflation for 2023 is already seen to come closer to given expectations that external price pressures such as oil prices are on the decline.
In terms of exchange rates, FMIC-UA&P Capital Market Research said that its movement would largely depend on US inflation and the actions of the Federal Reserve.
