ADB Raises Its Growth Projection for the PH

The Asian Development Bank (ADB) recently changed its growth forecast for the country.

In a supplement report to its “Asian Development Outlook”, the growth projection was increased to 6.5% for 2022. The previous projection was in April of this year at 6%.

ADB says this increase was due to the reopening of the economy and the government expanding its vaccination drives which are encouraging consumer spending and investment.

If ADB’s revised projection holds, this would match the Marcos administration’s goal of 6.5 – 7.5% growth for 2022.

“The Philippine economy’s growth momentum has accelerated close to its ideal growth path,” says ADB Philippines Country Director Kelly Bird.

In Developing Asia, only Indonesia and the Philippines received improved growth predictions from ADB.

“Strong domestic demand supported by a pick-up in employment and remittance inflows, private investment expansion, and large public infrastructure projects will underpin the country’s recovery from the economic impact of the pandemic,” Bird added.

In its report, ADB also pointed out that mobility in recreational places and workspaces went back to pre-pandemic levels, which also added to the economic recovery and consumer spending. This increased mobility of people partly caused the new increase in COVID-19 cases in the Philippines.

Additional factors of the increase in COVID-19 cases are also due to the diminishing vaccine immunity, slow rate of administered boosters, and faster spreading of COVID-19 variants.

ADB also says in their report that the Philippines also faces certain risks that may hinder its growth such as the depreciating peso, rising prices of commodities, and stricter monetary policies.

Source: Philstar