Bank of the Philippine Islands, the third-largest lender, reduced its 2023 economic growth to 5 percent from 6 percent because of local and global headwinds that include elevated inflation and higher interest rates.
BPI’s growth projection was lower than the actual expansion of 7.6 percent last year and the government’s forecast of 6 percent to 7 percent for 2023.
BPI Global Markets economist Rafael Alfonso Manalili said in a report Thursday that risks continued to weigh on growth.
“One of the headwinds is high inflation which continues to beset consumer spending. Inflation has gone up significantly and it has a significant impact on the economy because we are a consumer-driven economy,” he said.
“We expect average inflation to settle within the 4.5 percent to 5.5 percent range this year. The decline in inflation will be gradual or slow because of persistent supply constraints especially in the agriculture sector,” he said. Julito G. Rada
