PH to be the 2nd fastest growing economy in SE Asia by 2023
MANILA, PHILIPPINES — The Asian Development Bank expects the Philippines to be the second fastest-growing economy in Southeast Asia this year and in 2023.
In its Asian Development Outlook (ADO) 2022 Update, the multilateral lender revised its economic growth forecast for the Philippines to 7.4% by year-end, higher than its 6.5% September estimate.
“The Philippine economy has shown strong underlying growth momentum and resilience in 2022, and this is expected to continue in 2023, with GDP growth converging towards its longer-term growth rate of about 6%,” ADB Philippines Country Director Kelly Bird said in a statement.
For 2023, meanwhile, the ADB lowered its Gross Domestic Product (GDP) forecast for the Philippines to from 6.3% to six per cent, falling at the low end of the government’s six to seven per cent target.
However, although lower than previously forecasted, the ADB stated that its 2023 predictions for the Philippines are the second-fastest among Southeast Asian economies, following Vietnam’s 6.3%. This is also above the lender’s 4.7% outlook for the region next year.
Bird explained, “There are downside risks to growth in 2023, including inflation stickiness, further increases in interest rates, and a sharper-than-expected slowdown in GDP growth in advanced countries.”
Meanwhile, Bank of the Philippine Islands (BPI) lead economist Emilio Neri Jr. said that attracting more investments will be crucial for the country to sustain its economic growth and hit a 2023 GDP target.
“If there is no sharp improvement in investments… we may have to set them with something like 5 to 6 percent. So, (it is) very crucial to boost investments,” Neri stated.
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