Philippines’ GDP growth not expected in 2023-World Bank
2022.12.06 00:30
Philippines’ GDP growth not expected in 2023-World Bank
Budrigannews.com – According to a statement released on Tuesday by the World Bank, soaring inflation and higher interest rates are reducing domestic demand, and as a result, the Philippine economy is expected to lose momentum in 2023, slowing to 5.7 percent.
The government cut its 2023 growth projection on Monday from 6.5%-7.5% to 6.0%-7.0%, which was more pessimistic than the World Bank’s outlook, which was reduced from its earlier growth forecast of 5.8%.
The World Bank stated, “The forecast for 2023 is based on reduced consumer demand, high inflation, and high interest rates, which are expected to limit household spending and investments.”
After the strong performance of the Southeast Asian nation from January to September, the World Bank predicts that the Philippines will finish 2022 on a high note with an economy that will expand by 7.2%. This is a significant increase from its previous growth projection of 6.5 percent.
Economic output averaged 7.7% in the nine months to September as the government lifted nearly all COVID-19 restrictions and permitted more business activities to resume. As a result, the Philippines is on track to meet its growth target of 6.5 percent to 7.5% this year.
World Bank Senior Economist Ralph van Doorn stated at a press conference, “This deteriorating global environment is spilling into the domestic economy and tempering the country’s growth prospects in 2023.”
According to Van Doorn, the Philippines must address the impact of high inflation, maintain its sound fiscal position, and continue to invest in agriculture, health, and education to increase productivity in order to safeguard growth.
Inflation in the Philippines reached a 14-year high in November, putting pressure on the central bank to tighten monetary policy, as it does in many other nations.
