PH economy may increase to 6% in 2021
The Philippine economy is forecasted to grow 5% to 6% this year because of its strong fundamentals, the COVID-19 vaccine rollout, and election spending, according to a statement by several economists last Wednesday.
First Metro president Jose Patricio Dumlao said in a virtual briefing, “Our economy remained resilient. The country has maintained its credit ratings and we continue to have a strong and healthy banking system, ample foreign reserves, and adequate fiscal stamina. And now, we are seeing our economy switching from resilience to growth.”
He added that remittances from overseas Filipinos grew 13% in April while the Business Process Outsourcing (BPO) industry had performed better despite the new remote work arrangements.
This is in response to the latest revision of Fitch’s credit rating outlook of the country from “stable” to “negative”.
Vic Abola, an economist from the University of Asia and the Pacific, commented that “Fitch has a record of seeing negatives in the Philippines. It is the only one amongst the rating agencies which still retains BBB. The other two, S&P and Moody’s [have] BBB Plus.”
