GDP growth in Philippines projected at 5.8% in 2024: Citi economist

Full-year 2024 economic growth is projected to settle at 5.8 per cent and further accelerate to 6 per cent in 2025.

The recent enactment of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE), would help support the continuation of private sector investments and foreign direct investment growth, Chutchotitham said.

Reducing the corporate income tax rate to 20 per cent from 25 per cent, the bill offers additional deductions on power expenses and streamlines the value-added tax refund processes, according to a news agency.

The central bank, which has cut policy rates by a total of 50 basis points this year, would release more liquidity into the banking system and likely continue to support strong credit expansion, he said.

Inflation, meanwhile is well within the government's 2-4-per cent target, settling at 2.3 per cent in October.

Household consumption is likely to improve further, backed by a lower interest rate and improved consumer sentiment as inflation continues to stabilise, said Chutchotitham.

Infrastructure projects are also likely to proceed at a faster pace in Q4 2024 and Q1 2025, he added.

Fibre2Fashion News Desk (DS)