S&P Global Ratings Adjusts Economic Projections for PH

S&P Global Ratings has issued revised economic growth projections for the Philippines.

S&P Global has not stated the reasons behind these changes. However, S&P Global has noted factors such as the decline in the Purchasing Managers’ Index (PMI) for manufacturing in August and slower-than-expected economic growth in the second quarter as possible contributors.

Yearly Economic Projections

S&P Global Ratings has lowered its growth projection for the country in 2023. From 5.9% in the past projection, it now stands at 5.2%. Meanwhile, for 2024, S&P Global Ratings has increased its projection from the previous 5.9% to 6.1%, and for 2025, the projection stands lower from 6.8% to 6.2%.

Inflation Outlook

For 2023, S&P Global expects the full-year inflation rate to be at 5.8% on average. This projection is higher than the target rate, with an estimated deviation of 2% to 4%.

On a positive note, the inflation rate is predicted to decrease in the following years. In 2024 and 2025, it is expected to drop below 4%, specifically to 3.2%. By 2026, the inflation rate is projected to dip even further, falling below 3%. (ASC)