GROSS domestic product (GDP) is expected to remain within the official growth target band this year, ING Philippines said.
“The Philippine economy remains a standout performer in Asia, with GDP growth projected at 6.1% in 2025, following a strong recovery in 2024,” it said in a statement.
“The country ranked the third-fastest-growing economy in Asia and eighth globally in 2024, driven by robust labor market conditions and rising domestic consumption.”
ING’s forecast would be at the lower end of the Development Budget Coordination Committee’s 6-8% target for the year.
The economy expanded by a weaker-than-expected 5.2% in the fourth quarter, bringing 2024 growth to 5.6%, missing the government’s target.
“Additional initiatives, including entry into the JPMorgan Bond Index and amendments to key banking charters, underscore the government’s commitment to fostering a competitive economy,” ING added.
The growth outlook, along with easing inflation, could also attract investment despite the weak peso.
Inflation eased to 2.1% in February from 2.9% in January and 3.4% a year earlier. This was also the weakest inflation reading in five months.
The bank said reforms such as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act will boost investment due to the reduction of corporate tax rates. — Luisa Maria Jacinta C. Jocson