Composite image - Inquirer file/stock photos.
MANILA: (Bernama-Xinhua) The Asian Development Bank (ADB) predicts that moderating inflation, monetary easing, and continued public spending, particularly on infrastructure, will drive economic growth in the Philippines for 2024.
According to the updated Asian Development Outlook September 2024 report released Wednesday, these factors will enhance investment and consumption, supporting the country's economic resilience amid global uncertainties, reported Xinhua.
The ADB maintained its growth forecast for the Philippine economy at 6 per cent for 2024 and 6.2 per cent in 2025.
The report said that the country's growth will be driven by broad-based domestic demand, supported by a moderation in inflation and monetary easing.
The ADB lowered its inflation forecast for the Philippines to 3.6 per cent in 2024 from its April estimate of 3.8 per cent. Inflation is expected to ease further to 3.2 per cent in 2025 compared to the previous estimate of 3.4 per cent.
"Most of the ingredients for the Philippines' sustained economic growth are in place, rising government revenues are boosting public expenditures on infrastructure and social services, increasing employment is driving consumption, and reforms to open the economy to more investments are underway.
"With inflation slowing, the country is in a strong position to lead growth in Southeast Asia," ADB Philippines Country Director Pavit Ramachandran said.
However, the report warns that risks remain from potential severe weather events that could drive inflation higher. Besides, external factors, such as financial volatility arising from US monetary policy decisions, geopolitical tensions, and higher global commodity prices, also pose threats to growth. - Bernama-Xinhua
