Robust Q3 growth bumps up 2023 growth predictions for Philippines

Oxford Economics has upgraded its 2023 growth forecast for the Philippines to 5%, an increase from the previously projected 4.5%. This revision follows a robust 5.9% economic expansion in the third quarter, exceeding the 4.3% growth of the second quarter. Despite this, the forecast remains below the government's 6-7% target. The country's economy has grown by 5.5% from January to September. Looking ahead, Oxford Economics anticipates a slowdown in the fourth quarter, projecting only 3.6% GDP growth, below the 7.2% needed to meet the government's year-end goal. Economist Makoto Tsuchiya cites weak external demand and only a gradual recovery in semiconductor exports as key factors. He also notes potential domestic challenges from higher interest rates and subdued private investment and consumption.