Economy in 2023 likely grew by 5.6% — Security Bank
Security Bank believes the economy grew slower by 5.8 percent in the fourth quarter last year which could translate into a full-year growth of 5.6 percent.
These figures are slightly lower than the third quarter’s 5.9 percent growth recorded by the Philippine Statistics Authority.
Dan Roces, the bank’s chief economist, attributed the decent economic growth forecast to strong household consumption backed by a bigger labor force, despite high interest and inflation rates.
Optimistic economic outlook
‘The decent economic growth forecast was attributed to strong household consumption backed by a bigger labor force, despite high interest and inflation rates.’
“The economic outlook is optimistic. A decrease in unemployment rates indicates a stronger job market, boosting consumer spending,” he said.
“A surge in big-ticket consumption, especially in vehicle sales, reflects growing consumer confidence and disposable income,” Roces continued.
Fewer jobless Filipinos were seen in November at 1.83 million from 2.09 million in the prior month, according to the PSA.
Meanwhile, Roces said the manufacturing sector posted a 1 percent growth in factory output compared to 1.5 percent in October based on a survey by the statistics authority.
Elevated policy rate a concern
However, Roces said the elevated policy rate by the Bangko Sentral ng Pilipinas at 6.5 percent remains a “concern” which has restricted borrowing of consumers and firms for purchase of various goods and services.
The economist’s outlook came after BSP Governor Eli Remolona Jr. said the central bank’s Monetary Board is still considering a higher-for-longer rates to ensure inflation stays within its 2 to 4 percent target.
The PSA reported overall inflation started slowing from 4.9 percent last October to 3.9 percent in December.