BSP Bullish on Economic Growth This Year

The Bangko Sentral ng Pilipinas (BSP) is optimistic about the country's growth prospects this year, driven by lower inflation, strong domestic spending, lower borrowing costs and a resilient banking system.

- KEISHA TA-ASAN

BSP Governor Eli Remolona Jr. told The STAR that inflation has moved back within the government's two to four percent target range and has been on a steady decline since it peaked at 8.7 percent in January 2023.

"With inflation back within target, the outlook for economic growth is quite positive. Lower inflation—combined with adequate liquidity and credit as well as improving labor market conditions—is expected to support domestic spending," he said.

The Philippine economy expanded by 5.2 percent in the third quarter of 2024, slower than the previous quarter's 6.4 percent growth. For the first three quarters, the country's gross domestic product (GDP) averaged 5.8 percent.

Economic managers are targeting a six to 6.5 percent GDP growth in 2024 and six to eight percent expansion in 2025 up to 2028.