Asean+3 Macroeconomic Research Office (Amro) logo | INQUIRER.net file photo
MANILA – The Asean+3 Macroeconomic Research Office (Amro) has revised its full-year 2023 growth forecast for the Philippines to 5.9 percent from the earlier projection of 6.2 percent. This revision is due to weak demand for Philippine exports and high growth numbers recorded in the previous year, as cited by Amro during their Annual Consultation Visit to the Philippines.
The preliminary assessment conducted by Amro during the visit prompted the revision of the growth forecast. The team led by principal economist Runchana Pongsaparn engaged with officials from the Bangko Sentral ng Pilipinas and the Department of Finance to discuss the risks and challenges facing the country, as well as policy options to sustain growth, manage inflation, restore fiscal buffer, and address structural issues.
Pongsaparn stated that although the expected GDP growth for the Philippines in 2023 is now lower compared to the previous forecast, it is expected to increase to 6.5 percent in 2024 as external demand recovers. Amro has maintained its forecast for next year, citing the robust domestic demand supported by labor market improvement, lower inflation, overseas remittances, and increased government infrastructure spending.
However, Amro highlighted various risk factors and challenges that could cloud the outlook for the Philippines. These include high inflation caused by local supply shocks in the food sector, an economic slowdown in major trading partners, volatility in the global financial market, tighter financial conditions, scarring effects of the pandemic on long-term growth potential, pace of infrastructure development, geopolitical risks, and economic losses from natural disasters exacerbated by climate change.
Amro suggests a comprehensive strategy to bolster the Philippines’ medium- to long-term economic growth potential. This includes upgrading and upskilling the workforce to embrace a more technology-driven economy and overcoming the scarring effects of the pandemic.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
