The Philippine economy expanded 5.9 percent in the third quarter of 2023 amid high inflation and high interest rates, the Philippine Statistics Authority said on Thursday.
Inflation has been weighing down consumption, which is one of the main drivers of growth in the country. After easing for six straight months, inflation quickened again in August and September as food and fuel prices surged. Rice and fuel prices stabilized in October slowing down inflation.Several multilateral lenders earlier downgraded their 2023 forecast for the country following lackluster growth in the second quarter.
The Asian Development Bank said growth may hit just 5.7 percent this year, down from an earlier forecast of 6 percent. The International Monetary Fund meanwhile cut its growth forecast to 5.3 percent this year down from its 6.2 percent projection.National Economic and Development Authority Secretary Arsenio Balisacan earlier said that to achieve the 6 to 7 percent growth target for 2023, the economy should grow at least 6.6 percent in the second half of the year.