
Moody’s Ratings projects the Philippines as Southeast Asia’s second-fastest growing economy for 2024 and 2025, with GDP growth forecasted at 5.9% this year and 6% in 2025, fueled by strong domestic demand. However, these figures fall below the Philippine government’s ambitious targets. Vietnam leads the growth projections. Despite a slower growth of 5.6% in 2023 and modest household spending increases, the outlook remains positive. Inflation is expected to average 3.8% in 2024, slightly above the central bank’s prediction, but within target, and ease to 3.3% in 2025. Moody’s notes rising food prices, particularly rice inflation, but sees limited risk of broader inflationary pressures.