Economists say Philippines economic recovery remains on track

Economists saw the Philippine economic recovery should remain on track this year although the pace of expansion likely slowed in Q2. Economists at First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) said higher employment, national government spending, and capital goods imports, as well as firm growth in exports and overseas Filipino workers remittances, should provide the impetus. Despite slower growth in Q2, FMIC and UA&P economists said the country's GDP will still expand by 6-7% this year. This is slightly lower than the 6.5-7.5% GDP target set by economic managers for 2022. The FMIC and UA&P also lowered their inflation forecast to 5-5.2% this year, from 5.5% previously, after inflation hit 6.1% in June due to rising prices of oil, food, and other commodities.