Constant inflation threatens Philippine GDP growth in 2023

Sustained increases in inflation could cut the Philippines’ gross domestic product (GDP) by 0.6% in 2023, according to the National Economic and Development Authority (NEDA) and Socioeconomic Planning Secretary Arsenio M. Balisacan. The government is targeting 6.5-7.5% GDP growth this year, and 6.5-8% expansion next year until 2028. Inflation quickened to 6.9% in September, the sixth straight month that inflation breached the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target this year. Balisacan said the rise in inflation is only “temporary” despite the continued increase in prices of food, oil, and utilities. The BSP expects inflation to average 5.6% this year before easing to 4.1% in 2023 and 3% in 2024.