World Bank cuts Philippine 2023 growth forecast to 5.6%

MANILA  -The Philippine economy is now expected to grow slower in 2023 than previously forecast as domestic growth reflected the general trend among large developing economies in East Asia and the Pacific.

In an update of the World Bank’s (WB) economic outlook for the region, the multilateral lender said the Philippines was now seen growing by 5.6 percent instead of 5.8 percent as expected in October 2022.

The World Bank said economic performance across the region, while robust, could be held back this year by slowing global growth, elevated commodity prices and tightening financial conditions in response to persistent inflation.

But across the region, growth is forecast to rev up to 5.1 percent in 2023 from 3.5 percent in 2022, thanks to the reopening and rebound of China’s economy.

World Bank raises 2023 growth outlook in developing East Asia as China reopens

Among the larger economies of the region, most—including Indonesia, the Philippines and Vietnam—are anticipated to grow more modestly in 2023 than in 2022.

“Most major economies of East Asia and the Pacific have come through the difficulties of the pandemic but must now navigate a changed global landscape,” said Manuela Ferro, World Bank vice president for this region.