Sun Life Investment Management and Trust Corporation (SLIMTC), the investment arm of Sun Life Philippines, expects the Philippine stock market will shine this coming 2023.

SLIMTC President and Chief Investment Officer Michael Gerard Enriquez expected that the average inflation rate will decelerate to 4.5 percent next year, which is still above the Bangko Sentral ng Pilipinas’ (BSP) target range of 2-4 percent.

This might prompt the BSP to continue raising interest rates in the near-term before slowing the pace next year, he said.

SLIMTC is also forecasting 2022 GDP growth at 7.6 percent before slowing to 5.35 percent next year as they expect that the recovery from the pandemic slump normalizes.

The Philippine peso would end the year at about Php56 against the US dollar but the Philippine peso might be weaker a little bit on 2023.

Sun Life sees a better 2023 for the Philippines as we continue to recover from the pandemic. We will still need to face some challenges but next year was seen to be better than the previous years.