The Asian Development Bank (ADB) has reduced its 2023 GDP growth projection for the Philippines from 6% to 5.7%, citing concerns about high inflation affecting consumer spending. ADB's Senior Regional Cooperation Officer for Southeast Asia, Dulce Zara, mentioned during a webinar that weaker domestic demand and reduced exports are among the reasons for this revision. Despite the slowdown, the ADB's 2023 growth forecast ranks the Philippines as the second fastest-growing economy in Southeast Asia, trailing Vietnam. In addition, the ADB maintained its inflation outlook for the Philippines at 6.2% this year, above the central bank's target. The El Niño weather phenomenon, which may adversely affect agriculture, was highlighted as a potential factor in further inflationary pressures. The bank also noted potential hikes in transport fares and wage adjustments as influencers of inflation.
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