"PH Expected to Post Another Growth Miss Fitch Ratings Forecasts 5.9% GDP Growth in 2024, but Missed Targets Likely Until at Least 2026

Title PH Expected to Post Another Growth Miss Fitch Ratings Forecasts 5.9% GDP Growth in 2024, but Missed Targets Likely Until at Least 2026

The Philippines is likely to continue missing its growth targets until at least 2026, according to Fitch Ratings. The debt watcher predicts that the country's gross domestic product (GDP) will grow by 5.9% in 2024, a slight improvement from last year's 5.6%. However, this still falls short of the government's target range of 6.0-8.0%.

The country has struggled to achieve its growth goals in recent years, with both 2023 and 2024 seeing GDP growth rates below the targeted range. Fitch attributes this to continued weakness in private capital formation, which is hampering the economy.

Implications for Technologists in 2025

For technologists, this forecast has significant implications for the industry's growth prospects. While the news may be disappointing, it also highlights the need for innovation and adaptability in the face of uncertainty.

It is important to recognize that the Philippines' economic struggles are not solely due to internal factors, such as corruption or infrastructure limitations. External factors like shifting global trade policies and geo-political tensions are also at play.

The Significance of This Forecast

The significance of this forecast lies in its impact on the country's medium-term growth prospects. Fitch still expects continued strong GDP growth and gradual fiscal consolidation, which is reflected in the BBB/Stable rating that was affirmed last June.

However, the report also warns of lingering domestic and external uncertainties, including

Escalating domestic political conflicts ahead of midterm elections, which could weigh on economic and fiscal performance.
Shifting US economic and foreign policies, which pose risks for the Philippines and other economies.

Conclusion

In conclusion, while the news may be disappointing, it also presents an opportunity for technologists to adapt and innovate in response to these changing circumstances. By staying informed about market trends and developments, we can better position ourselves for success in 2025 and beyond.

Key Takeaways

Fitch Ratings forecasts 5.9% GDP growth in 2024, but missed targets likely until at least 2026.
Private capital formation remains a key challenge for the Philippines' economy.
External factors like geo-political tensions and shifting global trade policies pose risks for the country's economic performance.

Keywords Fitch Ratings, GDP growth, Philippines, economic forecast, private capital formation, innovation.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.