PH economy projected to grow by 7.4% in 2022
The Philippine economy is expected to grow by 7.4% this year, said First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) Capital Markets Research.
In its November Market Call report, FMIC and UA&P Capital Markets Research said that the country’s economy could record strong growth by the end of 2022, following its 7.6% Q3 performance and high employment levels.
The depreciation of the peso — which boosts the income of overseas Filipino workers (OFWs), Business Process Outsourcing (BPOs) employees, and exporters — and the first post-pandemic Christmas season should also contribute to more spending in the fourth quarter.
In addition, government spending could also support growth in Q4 as state agencies make last-minute expenditures to use unspent amounts in their approved budgets.
While inflation is likely to remain elevated at over seven per cent in the last two months of the year, the report is looking for the full-year average to be at 5.7%.
“However, we expect it to significantly ease to below six percent by the first quarter of 2023 as food and crude oil prices stabilize,” FMIC and UA&P Capital Markets Research concluded.
