Philippine economy likely to expand by 5.5 percent in 2023, says Fitch

ABS-CBN News

Posted at Mar 08 2023 10:18 AM

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The Philippine economy is expected to remain resilient and expand by 5.5 percent this year, Fitch Ratings Director For Asia Pacific Banks Tamma Febrian said on Wednesday. 

"We are forecasting for GDP growth to be around 5.5 percent for 2023, although this is also subject to quite a bit of downside risk given the interest rate trajectory and global external risks," Febrian said.

A recession is "very unlikely" for the Philippines, with the most likely scenario being a bit of moderation, she said.

Fitch Ratings also expects more expansion for net interest margin for local banks, he said. 

The Philippines' gross domestic product (GDP) growth exceeded the target by growing 7.6 percent last year. Analysts are expecting a slower but still robust outturn this year.