The Philippine economy is anticipated to grow faster in 2024, with Union Bank of the Philippines projecting a 5.8 percent expansion, up from 5.5 percent in 2023.
However, it is expected to fall short of the government’s target growth due to the impact of the El Niño climate phenomenon on food supply and inflation. Unionbank’s chief financial officer, Manuel Lozano, highlighted the risk of inflation breaching the state’s target amid the ongoing dry spell affecting farms.
Despite hopes for improvement, concerns persist about inflation dampening economic output. The Bangko Sentral ng Pilipinas (BSP) may maintain tight monetary policy settings to address inflation, potentially hindering the government’s aim of achieving 6 percent growth.
Unionbank sees potential growth drivers in consumption, supported by improvements in the labor market, remittances, and government spending on infrastructure projects.
Source: PhilNews24 | April 30, 2024
