Phl growth seen at 6% this year

Global banking giant Citi and research firm BMI Country Risk & Industry Research see the Philippine economy expanding by six percent this year, following the release of the gross domestic product (GDP) growth data for the second quarter.

- KEISHA TA-ASAN

In a report, Citi economist for the Philippines Nalin Chutchotitham said the bank raised its GDP growth forecast to six percent from 5.9 percent previously due to the strongerthan-expected GDP outturn in the second quarter.

"While household consumption is likely to only gradually recover, there are supporting factors such as strong employment, as well as the expected lower inflation and interest rates in the coming months," she said.

The economy posted a faster growth rate of 6.3 percent in the second quarter. This was faster than the 4.3 percent expansion in the second quarter last year and the revised 5.8 percent growth in the first quarter of 2024.

According to Chutchotitham, growth was moderately strong in the first half after averaging six percent. This marked an improvement from 2023, but it fell below the 20102019 average of 6.4 percent.

She noted that household consumption remained subdued in the second quarter despite the strong headline print.