PH economy to grow by 6% in 2022 — ADB
The Philippine economy is expected to grow by six per cent this year and 6.3% in 2023 due to the strengthening of domestic investment and consumption in the country.
According to the latest report of the Asian Development Bank (ADB), the downtrend in COVID-19 cases and the shift to Alert Level 1 in most areas could also help boost the economy into faster recovery.
However, the ADB also warned that the “unpredictable sequence of global events” resulting from the Ukraine-Russia war could impact the country.
The ADB stated that “inflation could surge higher with second-round impacts, such as tightening credit markets and higher interest rates.”
The regional development bank increased its PH inflation forecast for 2022 from 3.7% to 4.2% due to the rising oil prices.
“Heightened and extended geopolitical tensions will dampen global growth, including in advanced economies, particularly Europe and the United States, which are among the Philippines’ key export markets,” the ADB added.
ADB’s economic growth forecast falls below the government’s seven to nine per cent target for 2022. Meanwhile, their inflation forecast is higher than the two to four per cent target band set by the Bangko Sentral ng Pilipinas for this year.
