Amro Sees Moderate PH Economy Growth at 5.9%

The Association of Southeast Asian Nations +3 Macroeconomic Research Office (Amro) expects the Philippines to have moderate economic growth at 5.9%, a slight downgrade from their previous projection of 6.2% in July.

According to Amro, the downgrade is attributed to “high base effects and weaker external demand.” However, they also mentioned that the economic growth rate will reach 6.5% in 2024 when external demand recovers.

Amro also projected that the country’s inflation rate will decrease to 5.5% this year, lower compared to 5.8% in 2022, and will further drop to 3.8% in 2024. However, there was a recent increase in inflation in August 2023 to 5.3%.

The report also cited several risks and challenges facing the Philippines, including high inflation, economic slowdown in major trading partners, and global financial market volatility. Long-term growth potential is also affected by the pandemic’s effects, infrastructure development pace, geopolitical risks, and climate change-related economic losses.

Amro also recommends policies to upgrade and upskill the workforce for a more technology-driven economy, attract foreign investments, promote exports, and enhance competitiveness through infrastructure investment, digitalization, and green economy development. (ASC)