ADB cuts Phl growth outlook to 6% in 2024

The Asian Development Bank (ADB) has trimmed its growth forecast for the Philippines for this year, citing risks posed by extreme weather events that can drive up inflation and the slower growth in advanced economies.

- LOUELLA DESIDERIO

The multilateral lender's Asian Development Outlook (ADO) for April 2024 released yesterday showed the Philippines is expected to grow by six percent this year, lower than the previous target of 6.2 percent.

While the 2024 growth forecast was revised downward, the latest figure is faster than the 5.5 percent growth posted last year and within the government's six to seven percent growth target for this year.

The ADB's 2024 growth forecast for the Philippines, if achieved, would make the country the fastest growing economy, along with Vietnam, in Southeast Asia.

ADB principal country specialist Cristina Lozano said the growth forecast for the Philippines was downgraded due to the upside risk to inflation, with the extreme weather events likely to affect the country's agricultural output and food prices.

"Food has a strong weight of nearly 40 percent in the consumer price index in the Philippines," she said.