Philippines: 2024 Article IV Consultation-Press Release; and Staff Report

The Philippines has successfully navigated multiple external headwinds in recent years and is pursuing an extensive plan to achieve high and inclusive growth. After moderating in 2023, growth is expected to pick up in 2024-25, supported by gradual monetary policy easing. Inflation has declined to within the target band, though supply shocks pose upside risks. Risks to the growth outlook are tilted to the downside, including from recurrent commodity price volatility, escalation of geopolitical tensions and lower-than-expected payoffs from recent reforms. With macroeconomic policies well calibrated to achieve a soft landing in the near-term, expanding the economy's growth potential will be pivotal for the medium-term outlook.