'Sluggish investments, exports to hamper Phl growth'

Achieving economic growth of above 6.5 percent will be challenging this year amid subdued investment activity due to high interest rates and a weaker external sector, according to global research firm BMI Country Risk & Industry Research.

- KEISHA TA-ASAN

In a report, BMI said that while it is still possible for the Philippine economy to grow by 6.2 percent this year, downside risks are dominating the outlook.

"The economy will find it hard to breach the upper half of the six to seven percent growth target which the government has set. Headwinds stemming from restrictive financial conditions alongside a weaker external sector will keep a lid on growth," it said.

BMI said investment activity would stay muted amid a high interest rate environment. This was after the Bangko Sentral ng Pilipinas (BSP) hiked its key rate by 450 basis points to 6.5 percent from May 2022 to October 2023, the highest in 17 years.