PH Economic Growth Seen in Q2

The recovery of the tourism sector and the increase in infrastructure investments are one of the key factors that will help boost the economy in the second half of the year.

It is projected that if this continues, the full-year output of the economic growth is seen to be over 6 percent.

According to The Market Call issued on May 2023, the economy is foreseen to recover as inflation continues to slow down to an average of 3.3% in the fourth quarter of the year.

The Market Call is a monthly joint publication of First Metro Investment Corporation (FMIC) and the University of Asia and the Pacific (UA&P).

In the same report, the country’s gross domestic product (GDP) in the second half of 2023 is expected to grow as the tourism sector is recovering, backed by the “revenge spending” of tourists since the ease of health security policies and travel restrictions in the country.

Another driving force for this is the growth in infrastructure projects, both private and public, whose acceleration is attributed to the dry season. With more infrastructure comes more investments in the country.

However, according to the report, the GDP is also expected to slow down to around 0.5% in the second quarter compared to the previous quarter, which recorded a 6.4% expansion. (ASC)