PH Is Projected to Be Fastest Growing ASEAN Economy in Next Two Years

According to the DBS Bank Ltd. of Singapore, the Philippines is seen as the fastest-growing economy in the next two years among countries under the  Association of Southeast Asian Nations (ASEAN).

Economist at DBS, Chua Han Teng, has mentioned that the Philippines is predicted to have the highest gross domestic product growth in 2023 and 2024.

Teng has stated that the Philippines is expected to have a GDP expansion of 6.3% in 2023, which is faster than the 6% of Vietnam, the 5% of Indonesia, the 4% of Malaysia, the 3.8% of Thailand, and the 2.2% of Singapore.

“Even as we expect 2022 growth to register above seven percent, we see the expansion cooling to 6.3 percent in 2023 government’s range trimmed to six to seven percent from 6.5 to eight percent) given mounting headwinds,”  said Teng.

Teng notes that the Philippine economy has remained resilient for 2022 and is predicted to have a 7.4% GDP growth by the end of 2022. This comes after the Philippines averaged 7.7% in Q1 – Q3 of 2022, which makes it the third fastest economy among its ASEAN peers.

“Growth is on track to exceed the upper end of the government’s 6.5 to 7.5 percent forecast for the year. Economic opening from the pandemic has been a key support, despite multiple challenges from rising domestic inflation and interest rates, as well as global headwinds,” mentions Teng.

It was also pointed out by Teng that 2023’s domestic demand is expected to be affected by inflation, BSP’s monetary tightening, reopening gains, and pent-up demand.

Source: Philstar