The economy could grow by 5.7 percent this year, slower than the previous projection of 6 percent in April due to inflation and climate risks, the Asian Development Bank, or ADB, reported Wednesday.

ADB's Development Outlook report said the country's gross domestic product or GDP will likely settle at 6.2 percent, driven by sustained growth in the services sector, especially tourism and business process outsourcing or BPO.

"The Philippines' growth story remains strong despite an expected moderation in 2023. Public investment and private spending fueled by low unemployment rate, sustained increase in remittances from Filipinos overseas, and buoyant services including tourism will support growth," ADB country director Pavit Ramachandran said.

The services sector has been an economic growth driver with an 80 percent share in GDP and 7.2 percent expansion in the first half of this year and 8.8 percent in the same period last year.

ADB said high demand for tourism will continue as consumers' strong appetite for spending remains. Data from the Department of Tourism showed 3.6 million foreign arrivals from January to August, higher than the 2.7 million in the entire year of 2022. The government aims to attract 4.3 million foreign tourists this year.