'Phl faces limited fiscal, monetary support'

The Philippines is expected to receive minimal support from fiscal and monetary policies in 2025 as the government prioritizes post-pandemic debt consolidation, while interest rate cuts remain too modest to significantly stimulate household and business spending, according to ANZ Research.

- KEISHA TA-ASAN

In a report, ANZ Research said fiscal and monetary policies would offer limited support to overall growth in ASEAN-4 economies (the Philippines, Indonesia, Malaysia and Thailand) this year.

"We believe that fiscal and monetary support to growth in 2025 will be insufficient to overcome the evolving headwinds. Apart from Thailand, the fiscal stance is contractionary in other ASEAN-4 economies, whereas monetary policy will be constricted by a shallow easing cycle," ANZ said.

According to the research firm, the Philippines is projected to lead ASEAN-4 economies in nominal gross domestic product (GDP) growth in 2025, with a forecasted nine percent.