This study will be released as the lead chapter of the 2023–2024 PIDS Economic Policy Monitor. It examines the economic performance of the Philippines for 2023 and the first half of 2024. It presents conditions driving global, regional, and national outlooks, projections on growth, consumer prices, and prospects coming into 2025 – all of which are relevant to making informed household, enterprise, and policy decisions. As the economy moves towards the better normal, it is challenged by the persistence of headwinds from internal and external factors. As per the Philippine Statistics Authority (PSA), the economy grew by 5.6 percent in 2023 driven by growth in major sectors such as industry and services, while inflation recorded at 6.0 percent. As in previous EPM publications, this study would likewise include projected growth and inflation estimates for 2024 and 2025. Considered also are the flow of funds from abroad, employment, financial conditions, use of public funds, and expected consumer and business expectations on the country’s state of economic health. Taking off from the issues mentioned in previous macroeconomic prospects, this study underscores risks related to inflation, exchange rate movements, fiscal position, and impact of external factors to national economic growth and development.