S&P cuts Philippines’ 2023 GDP growth forecast to 5.2%

S&P Global Ratings has revised its 2023 GDP growth forecast for the Philippines down to 5.2% from 5.9%, citing the slowing global economy, delayed impact of rate hikes by the Bangko Sentral ng Pilipinas, and the effects of El Niño. The GDP growth projection for the Asia-Pacific region is also lowered to 4.3% from 4.5%. Despite the cut, the Philippines is still poised to be the second fastest growing economy in the region after India. S&P increased its GDP growth forecast for the Philippines to 6.1% for 2024 but reduced it for 2025 to 6.2%. The organisation predicts the inflation in the Philippines to reach 5.8% this year before declining to 3.2% in 2024 and 2025.