Phl economy seen to expand by 6.1%

The Philippine economy is projected to grow by 6.1 percent this year, supported by household spending as well as public investment, according to Moody's Ratings.

- By CATHERINE TALAVERA

In its 2025 Outlook for Sovereigns - Asia Pacific (APAC), Moody's Ratings said the Philippines would expand by an above-trend 6.1 percent, down from 6.2 percent.

"Rising employment and higher remittance inflows will support household spending. Public investment will also buttress growth, while reforms, including market liberalization and foreign investment will spur private-sector investment," Moody's Ratings said.

Last August, Moody's Investors Service affirmed its Baa2 rating - a notch above minimum investment grade - and stable outlook for the Philippines.

Moody's Ratings said it expects growth in the APAC to be steady overall in 2025, driven by slower, but still solid, expansion in China and India, robust gains in Southeast Asia and a return to trend growth in Australia.

"We project the 25 rated APAC sovereigns to grow 3.8 percent in 2025 in real terms compared with four percent in 2024 - without factoring in proposed changes in US trade policy," Moody's Ratings said.

It added that growth would be stronger in APAC than in most other regions.