Asian Development Bank affirms the country’s GDP growth to be at 6%, which will outgrow by 6.2% next year.
According to the latest outlook of the Asian Development Bank (ADB), the Marcos administration will hit the target growth this year amid inflation and expectations for interest cuts. Based on the insights, the Philippines is among the fastest-growing economies among the members of the Association of Southeast Asian Nations (ASEAN). The Philippines is projected to surpass other countries in terms of GDP growth, with Malaysia (4.4%), Kazakhstan (3.5 %), China (5%), Indonesia (5%), and Iran (3.3%).
“The region’s fundamentals remain strong, but policymakers still need to pay attention to a number of risks that could affect the outlook, from uncertainty related to election outcomes in major economies to interest rate decisions and geopolitical tensions.”
- Albert Park, ADB Chief Economist
The latest growth forecasts show that growth will be above the IMF (International Monetary Fund) projection for ASEAN -5, which is composed of nations like the Philippines, Vietnam, Indonesia, Thailand, and Malaysia. Stable inflation rates and monetary policy reforms will help support the economy for the next year. The IMF also forecasted that inflation would be an average of 3.4% this year, which will be lower than 6% full inflation in 2023.
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At the same time, the Philippines is tied with Vietnam for the top economic position in 2025. If the Asian Development Bank’s projection were true, both countries would beat the average 5% in developing Asia.
