ADB cuts PH...

pected global commodity prices could also weigh on growth,” the report said.

Despite all these challenges, ADB Philippines Country Director Pavit Ramachandran said the economy’s growth momentum “is picking up speed, driven by the government’s efforts to improve budget execution, mobilize additional revenue, and pursue reforms to boost the investment climate. Investments on large public infrastructure projects, as well as much needed social services, will boost government expenditures and bode well for the economy in the long run.”

The report also noted that the country’s current account deficit will narrow this yead and in 2025, supported in part by strengthening services exports.

“Promoting higher levels of private sector participation in the economy will be vital to further raise growth and productivity. Building on structural reforms and further measures to enhance the investment climate will support this agenda,” it added.

Also, it said tourism and business process outsourcing “should remain buoyant, while merchandise exports will improve moderately in 2025.”

“The steady increase in remittances from overseas workers will continue to help lift the current account. Lower global oil prices will also ease import costs,” it added.

The April 2024 ADO report said generally, developing economies in Asia and the Pacific are expected to perform better this year and should grow by 4.9 percent on average this year “as the region continues its resilient growth amid robust domestic demand, improving semiconductor exports, and recovering tourism.”

India is expected to remain a major growth engine in Asia and the Pacific, with a seven percent expansion this year and 7.2 percent in 2025, said ADB. China’s GDP is forecast to slow to 4.8 percent this year and 4.5 percent next year.