PH Decreases 2023 GDP Growth Forecast as Weakening of Global Activities Looms

Philippine officials have cut down the country’s gross domestic product (GDP) growth for 2023 as weaker global economic activity looms.

This comes as the inter-agency Development Budget Coordination Committee (DBCC) announced the adjustment to the growth forecast of the country from the previous projection of 6.5 percent to 8 percent down to 6 percent to 7 percent this year.

According to Finance Secretary Benjamin Diokno, the adjustment made to the GDP forecast was due to the global economic slowdown.

However, the Philippines will retain its growth forecast for the next five years.

Meanwhile, the country also made adjustments to its foreign exchange forecast, as the peso’s performance against the US dollar is now projected to be in the PHP54 to PHP55 range in 2022 from the initial forecast of PHP51 to PHP53 range as the peso looks to recover from the all-time low of PHP59 to a US dollar recorded in the last weeks of September and early October.

The country also sees the peso to be weaker in 2023, as forecasts show that the peso will float around the PHP55 to PHP59 range against the US dollar.

The cut to the latest GDP forecast of the country was made despite the 7.4 growth that the country saw in the second quarter of 2022 as the Marcos administration moved to free the country from COVID-19 restrictions. (GFB)