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ADB hikes Philippines growth forecasts
THE Asian Development Bank (ADB) on Tuesday raised its 2021 and 2022 Philippine growth forecasts, citing the country’s ramped-up vaccination program and declining Covid-19 cases.
In an update to its 2021 Asian Development Outlook, the Manila-based multilateral said Philippine gross domestic product (GDP) growth would likely hit 5.1 percent this year, up from 4.5 percent previously.
The projection is slightly higher than the government’s 5.0- to 5.5-percent target for this year.
For 2022, the ADB expects GDP growth to hit 6.0 percent, also higher than the 5.5 percent previously forecast but lower than the government’s 7.0- to 9.0-percent goal.
Inflation, meanwhile, was projected to hit 4.4 percent this year and 3.7 percent in 2022, mainly due to rising fuel prices.
The estimates are up from 4.1 percent and 3.5 percent previously.
“The Philippine economy has shown impressive resilience,” ADB Philippines Country Director Kelly Bird said.
“Growth momentum has clearly picked up on the back of the government’s vigorous drive to vaccinate Filipinos against the Covid-19 virus. Public spending on infrastructure and continued vaccination of the population will help the country further accelerate its recovery in 2022,” he added.
The report noted that vaccinations had allowed the economy to slowly reopen, boosting consumer and business confidence.
A total of 41.51 million Filipinos have been fully vaccinated as of December 13, the Department of Health‘s data show, while 54.91 million received their first dose.
The ADB also said that public spending on major infrastructure projects would support Philippine economic growth.
Source: https://www.manilatimes.net/2021/12/15/business/top-business/adb-hikes-ph-growth-forecasts/1825969