Growth on target this year, says BSP

The Philippine economy may grow within the six to seven percent target for this year, but it could fall below the targets set for 2025 and 2026 due to the negative impact of previous rate hikes on demand, according to the Bangko Sentral ng Pilipinas BSP).

- KEISHA TA-ASAN

In its August Monetary Policy Report, the BSP said gross domestic product (GDP) growth could fall below the 6.5 to 7.5 percent and 6.5 to eight percent targets for 2025 and 2026, respectively.

“Growth prospects are relatively stable for the rest of the year, driven by robust construction spending and the timely implementation and expanded coverage of various government programs,” the BSP said.

The economy is also on track to grow “near potential,” as the overall balance of demand and supply conditions indicated limited demand-based inflationary pressures over the coming years.