The Philippines' strong labor market will power the Philippine economy in 2024, pushing it to post the second fastest growth rate in ASEAN, an analyst said on Wednesday.

Aris Dacanay, HSBC Global Research's ASEAN Economist, noted that the country's jobless rate has fallen, even as the labor force participation rate grew, pointing to the strength of country's labor market.

• Unemployment rate falls to 3.6 percent in November

"We're pretty confident that the Filipino citizens will lift the Philippine economy up throughout the year," Dacanay said in an interview with ANC.

With inflation easing, the Bangko Sentral ng Pilipinas is also expected to begin cutting rates this year.

But unlike the forecast of Finance Secretary Benjamin Diokno for the BSP to cut rates by 100 basis points this year, Dacanay said the central bank is more likely to limit this to just 75 bps.

He said the BSP needs to keep pace with the US Federal Reserve to protect the peso from volatility. HSBC expects the Fed to start with a 25 bps cut in the second quarter, followed by more 25 bps cuts in the succeeding quarters.

Rice prices however remain a threat a growth, as international prices of the commodity are hovering at their highest levels since 2008, Dacanay said.

The Philippine Statistics Authority recently noted that rice inflation has been quickening.

• Inflation eases to 3.9 percent in December