Economist Predicts Potential Double-Digit Growth in Philippine Manufacturing

Manila – The Philippine manufacturing sector could see double-digit growth if inflation continues to ease, according to an economist’s statement on Friday. Rizal Commercial Banking Corporation (RCBC) Chief Economist, in a Viber message to the Philippine News Agency, commented on the recent single-digit growth levels in manufacturing, attributing them to high inflation and interest rates since 2022.

According to Philippines News Agency, data shows that manufacturing output, both in volume and value, grew in September.

The value of production index increased by 8.9 percent, while the volume of production index expanded by 9.1 percent. The economist, Ricafort, suggested that double-digit growth in manufacturing is achievable with the further reopening of businesses, including tourism and other sectors heavily impacted by the pandemic. He also mentioned that manufacturing growth could accelerate once inflation eases further and central banks, including the Federal Reserve, start to cut rates, potentially in 2024. Ricafort highlighted that lower interest rates could stimulate investment and manufacturing activities, leading to job creation and other economic activities. He also pointed out that growth in manufacturing is a structural result of increased net foreign direct investment inflows into the country, driven by various international investment commitments since late 2022.