The Philippines’ economic recovery is expected to remain robust amid high inflation and weaker external demand. Growth is forecasted to moderate to 5.6 percent in 2023 from a multi-decade high of 7.6 percent in 2022, and to pick up to 6.3 percent in 2024 as external demand recovers. Headline inflation is expected to rise from 5.8 percent in 2022 to 6.0 percent in 2023 and then moderate to 3.6 percent in 2024, within the 2–4 percent inflation target.

The banking sector sees improved profitability, ample liquidity, and sufficient capital buffer. The fiscal position continues to improve in 2023 due to strong revenue collection and moderate spending.

These conclusions are highlighted in AMRO’s 2023 Annual Consultation Report on the Philippines.