Economy grew 6% in Q2

MANILA: The Philippine economy likely grew at 6 percent in the second quarter of the year, an economist said on Friday. In a Viber message, Rizal Commercial Banking Corporation chief economist Michael Ricafort said drivers of growth include the higher consumer and government spending. "Faster consumer spending, which accounts for at least 70 percent of the economy, as many businesses and industries recover further with no more Covid restrictions for more than a year already or since June 22, 2023, especially those hit hard by the pandemic, going back or even exceeding [their] pre-pandemic levels," he said. He said the faster government spending, meanwhile, was led by the continued growth in infrastructure spending as well as preparations for the May 2025 midterm elections as government agencies ramp up the implementation of projects or programs before the election ban. Official second quarter Philippine economic growth data will be released by the Philippine Statistics Authority next week. In the first q uarter of the year, the Philippine economy grew by 5.7 percent. Ricafort said Philippine economic growth near or at 6 percent levels could be sustained in the next quarters due to favorable demographics and the continued recovery of some industries such as tourism. He said growth drivers for 2024 and beyond include the easing inflation and the possible reduction in interest rates, further recovery of the tourism sector and continued growth in overseas Filipino remittances. He said other drivers of growth include the continued growth in business process outsourcing (BPO) that generated more than USD35 billion in 2023 and still expected to grow further to USD39 billion in 2024 and even higher in the coming years. Source: Philippines News Agency