Philippines Maintains 6-7 Percent GDP Target for 2023, Narrows 2024 Forecast

With robust domestic demand and broad-based expansion in major sectors, the Philippine economy grew by 5.5 percent in the first three quarters of this year, sustaining its position as one of the best-performing economies in the Asia-Pacific Region, said the Development Budget Coordination Committee (DBCC) in a statement.

"This growth momentum is expected to continue for the rest of the year and surpass that of our neighboring countries," the DBCC added.

The interagency economic team retained the 6.5 to 8 percent GDP growth assumption for 2025 to 2028, and believed this year's corresponding GDP per capita would be above pre-pandemic levels.

The DBCC also pegged the average inflation rate at 6 percent this year. The inflation rate is expected to return to the target range of 2 to 4 percent from 2024 until 2028.

The Philippine economy expanded by 7.6 percent in 2022, as one of the fastest economies in the Asia Pacific region. In 2021, the country's GDP grew by 5.7 percent after contracting 9.6 percent in 2020 due to the pandemic.

In its latest report, the Asian Development Bank forecast the Philippines' GDP in 2023 at 5.7 percent and 6.2 percent in 2024. The multilateral lender forecast inflation to hit 6.2 percent this year and 4 percent in 2024.

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