The Philippine economy is projected to grow by over 6 percent in 2024 and 2025, making the country the second fastest-growing economy in the region.

In its latest quarterly update of the ASEAN+3 Regional Economic Outlook (AREO) released on Tuesday, the ASEAN+3 Macroeconomic Research Office (AMRO) said Philippine economic growth is projected to hit 6.1 percent this year.

Philippine economic growth is projected to accelerate to 6.3 percent next year.

AMRO’s latest forecast was lower than the 6.3 percent and 6.5 percent earlier projected for 2024 and 2025.

The report, however, showed that the projection is the second highest in the region, next to Vietnam’s 6.3 percent and 6.5 percent economic growth forecast for 2024 and 2025.

In a virtual briefing, AMRO chief economist Hoe Ee Khor said economic growth projections of many of the countries in the region are downgraded due to the weaker-than-expected recovery in the external sector.

“We have shaved it down from 6.3 to 6.1 [percent], which is in light of the data that comes out in the first half of the year, so as I said before, we are always looking at the data very closely and reviewing them,” said Khor.

“I think the Philippine growth is pretty robust and will pick up next year to 6.3 percent. So this is well within the official range of 6-7 percent while we are on the low side. But we will look at the data closely and we may revise it up in the second half if the data show that the economy become more strongly,” he added.

Inflation, meanwhile, is projected to settle at 3.3 percent this year, lower than AMRO’s earlier forecast which was 3.6 percent.

For 2025, headline inflation is forecast to decelerate further to 3.1 percent.

Khor said that in the case of the Philippines, inflation has finally come off the peak within the 2 to 4 percent target. (PNA)