PHILIPPINE DAILY INQUIRER – The Asian Development Bank (ADB) has maintained its growth prediction for the Philippine economy, expecting a steady pace of recovery from the pandemic in the region. The bank forecasts a six-per-cent growth for this year and 6.2 per cent for the following year in the country’s domestic product.
In the quarterly update of its Asian Development Outlook 2023 report, ADB said domestic demand and services activity are driving growth in the region, while many economies are also benefiting from a strong recovery in tourism including the Philippines.
The multilateral lender noted that robust investment and private consumption drove the Philippine economy to grow by 6.4 per cent in the first quarter of 2023, supported by rising employment, expanding production and retail sales, and brisk private and public construction.
On the other hand, merchandise export declined, though partly offset by expansion in service exports. “Tourism bounced back, and growth remained strong for business process outsourcing and information services,” the ADB said.
Economist at the University of Asia and the Pacific Victor Abola said, in a midyear briefing hosted by First Metro Investment Corp, he expected a 5.6-per-cent growth in the second quarter and then “much more robust recovery” in the third and fourth quarters.
“For the next full year (2024), I expect an acceleration to 6.5 per cent because a lot of the infrastructure projects are just regaining their footing,” Abola said.
“These would come into play, apart from the fact that the housing program of [President Marcos] will go on full swing by next year to address the six million backlog – at one million housing units per year compared to the 200,000 to 300,000 that we produce every year,” he added.
