Finance Secretary Ralph Recto predicts Philippine economy may grow below 6 percent in the first quarter of 2024 due to high inflation and unfavorable base effects that could impact consumer spending. Recto expects GDP growth between 5.8 and 6.3 percent, surpassing the government’s target of 6 to 7 percent. However, he emphasized the need to consider the challenges posed by inflation and base effects from the previous year’s high growth. Analysts suggest achieving a 6 percent growth may be challenging as long as interest rates remain high. The BSP plans to maintain borrowing costs given the current inflation levels. Recto aims for within-target growth for the rest of the year despite the challenges in the first quarter.
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