MANILA, April 4 (Xinhua) -- Philippine economic growth is expected to remain in a healthy expansion mode this year from 2022's forecast-beating outturn, underpinned by rising domestic demand and a recovery in services, particularly tourism, according to a new Asian Development Bank (ADB) report released on Tuesday.
Asian Development Outlook (ADO) April 2023, the ADB's flagship economic publication, expects the Philippine economy to grow by 6.0 percent this year, climbing further by 6.2 percent in 2024.
The report says a recovery in employment and retail trade, sustained expansion in the manufacturing sector, and rising public infrastructure spending will support growth.
However, it warns that risks from a sharper-than-expected slowdown in major advanced economies, heightened geopolitical tensions, and inflation stickiness could dampen the outlook for gross domestic product (GDP) growth.
"The Philippines will grow at its potential this year and next and is on track toward (becoming) an upper middle-income country," ADB Philippines Country Director Kelly Bird said.
Like most other economies, "the Philippines will be increasingly challenged by the impacts of climate change and the effects of emerging technologies on the labor market," Bird added.
According to the report, inflation is expected to average 6.2 percent in 2023 before easing to 4.0 percent in 2024.
The report also says that the country faces the challenge of addressing climate change and risks to food security, especially for the low-income, as malnutrition and hunger persist. ■
