ADB ups 2022 PH growth forecast
The Asian Development Bank (ADB) foresees a 6.5% growth in the Philippine economy for 2022, up from the bank’s April forecast of six per cent.
In the recently released Asian Development Outlook (ADO) 2022 Supplement, ADB said that the Philippine economy is set to grow faster than initially expected this year following the relaxation of COVID-19 restrictions, expansion of the coronavirus vaccination program, and a rebound in investment and household consumption.
ADB Philippines Country Director Kelly Bird said that the country’s growth momentum has accelerated close to its ideal growth path.
Wider Covid-19 vaccination coverage, with adolescents among those getting inoculated, and relatively mild health impacts from the Omicron variant have allowed the government to relax restrictions in Q1 2022. This, in turn, spurred a resumption of business operations and the decline of unemployed individuals.
The unemployment rate was at six per cent in May 2022, down from 7.7% the previous year.
However, ADB added that the sharper-than-expected slowdowns in major industrial economies, possibly sustained elevated global commodity prices, and tighter financial conditions could negatively impact the country’s economic growth for the second half of the year.
Inflation is forecast to quicken to 4.9% and 4.3% in 2022 and 2023, respectively, on the back of higher global commodity prices.
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