"The underlying positive growth delta is driven by domestic demand as both investment and consumption accelerate in 2025," Lim said in a recent virtual briefing.
She said private investments would recover gradually as financial conditions become less restrictive and consumer sentiment gradually picks up.
Solid labour income growth and the easing of food inflation will also help boost consumption growth, she was cited as saying by domestic media reports.
Lim said government spending and the continued growth in services exports would also support economic growth.
In the case of trade tariff escalation, the Philippine peso could also be a relative outperformer in the region she said.
Easing inflation would allow the central bank to reduce policy rates by 50 basis points this year, Lim said. Last year, the BSP reduced policy rates by 75 basis points.
ALCHEMPro News Desk (DS)
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