Consumer spending could boost PH recovery – Pantheon Macroeconomics
Strong consumer spending could boost the Philippines’ economic recovery, said think tank Pantheon Macroeconomics. However, the country’s low vaccination rate could be a risk in further reopening the economy.
In the report, Pantheon Macroeconomics senior Asia economist Miguel Chanco stated that the household spending in the country “appears to be back on track” as it grew by 1.4% month-on-month last October.
Chanco added that the mobility in the country has “continued to improve rapidly” and is now nearing the January-to-February 2020 baseline.
Despite this, Filipinos are still focused on only going out for necessities, recording a 43% point gap in essential and non-essential travel — the second-highest in Asia, after India.
The Philippines is also lagging behind other Asia-Pacific countries when it comes to vaccination rates with only 36% of its population fully vaccinated, and 49% receiving their first doses.
Chanco noted that “at best, the comparatively low share of the population with partial protection from a single shot could merely reflect an official policy priority to get as many vulnerable groups fully vaccinated as fast as possible.”
Pantheon Macroeconomics is expecting the full-year GDP growth in the country to slow down by 4.5% in 2022 from 5.5% this year.
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