Fitch subsidiary slashes 2023 PH economic outlook | ABS-CBN
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Fitch subsidiary slashes 2023 PH economic outlook
Fitch subsidiary slashes 2023 PH economic outlook
ABS-CBN News
Published Aug 11, 2023 06:37 PM PHT
MANILA -- A subsidiary of Fitch Solutions on Friday said it is slashing its growth outlook for the Philippines.
MANILA -- A subsidiary of Fitch Solutions on Friday said it is slashing its growth outlook for the Philippines.
BMI revised its full year growth forecast for the Philippines to 5.3 percent after the gross domestic product expanded by 4.3 percent in the second quarter of 2023, below its expectations.
BMI revised its full year growth forecast for the Philippines to 5.3 percent after the gross domestic product expanded by 4.3 percent in the second quarter of 2023, below its expectations.
Consensus estimate for Philippine economic growth for the second quarter was 6 percent.
Consensus estimate for Philippine economic growth for the second quarter was 6 percent.
The company's initial growth forecast for the Philippines was at 5.9 percent.
The company's initial growth forecast for the Philippines was at 5.9 percent.
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BMI said the Philippine economy will continue to face headwinds like high interest rates, the weak external sector, and bad weather conditions.
BMI said the Philippine economy will continue to face headwinds like high interest rates, the weak external sector, and bad weather conditions.
BMI said tight credit conditions will continue to weigh on domestic activity.
BMI said tight credit conditions will continue to weigh on domestic activity.
"While we think that inflation will continue to ease over the coming months, we think that the (Bangko Sentral ng Pilipinas) will leave its key policy rate at 6.25 percent until H124 and only loosen policy gradually over the course of next year."
"While we think that inflation will continue to ease over the coming months, we think that the (Bangko Sentral ng Pilipinas) will leave its key policy rate at 6.25 percent until H124 and only loosen policy gradually over the course of next year."
"This is because the peso would be susceptible to further weakness if the central bank were to loosen monetary policy prematurely," the company noted.
"This is because the peso would be susceptible to further weakness if the central bank were to loosen monetary policy prematurely," the company noted.
BMI also said weak external demand will hamper the growth of Philippine exports.
BMI also said weak external demand will hamper the growth of Philippine exports.
The company said it expects global growth to slow from 3.1 percent in 2022 to 2.4 percent in 2023.
The company said it expects global growth to slow from 3.1 percent in 2022 to 2.4 percent in 2023.
"More specifically, we expect that the US and Japan economies will remain very weak this year. They collectively account for around 30 percent of the Philippines' total exports," it said.
"More specifically, we expect that the US and Japan economies will remain very weak this year. They collectively account for around 30 percent of the Philippines' total exports," it said.
BMI also said the Philippines’ agricultural sector may "falter" over the
remainder of this year.
BMI also said the Philippines’ agricultural sector may "falter" over the
remainder of this year.
The firm noted that crops were heavily damaged by typhoons that hit the Philippines.
The firm noted that crops were heavily damaged by typhoons that hit the Philippines.
Economic managers on Thursday said they remained optimistic that the Philippines can meet is 6-7 percent growth target for 2023.
Economic managers on Thursday said they remained optimistic that the Philippines can meet is 6-7 percent growth target for 2023.
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