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July 21, 2024

Moody’s Analytics forecasts 5.1% Q3 GDP growth and 5.7% October inflation

Moody’s Analytics has projected a 5.1% GDP growth for the Philippines in the third quarter and anticipates a lower inflation rate of 5.7% for October, down from 6.1% in September.

These economic indicators are vital for the Monetary Board policy rate decision by the Bangko Sentral ng Pilipinas on November 16, with the government set to announce the consumer price index on November 7 and the third-quarter GDP report on November 9.

Moody’s attributes the expected GDP growth improvement to increased government spending, though it acknowledges that elevated inflation and high interest rates could affect consumer spending.

While BSP Governor Eli M. Remolona Jr. anticipates lower inflation in October, the recent adjustment in jeepney fares, higher electricity costs, and other factors could impact the inflation rate, which remains above the BSP’s target range.