PH economy to hit 6.5% growth target by year-end
The Philippine economy is on track to hit its 2022 growth target of 6.5% by the end of 2022 despite a “higher-than-target” 5.5 percent inflation, said First Metro Investment Corp. (FMIC) and University of Asia and the Pacific (UA&P) Capital Markets Research.
In an October Market Call report, FMIC and UA&P Capital Markets Research said consumer spending would continue through Q4 in preparation for the Christmas season.
Simultaneously, the higher peso incomes of overseas Filipino workers (OFWs), Business Process Outsourcing (BPO) employees, and exporters are expected to mute the negative effect of inflation.
The Philippine economy had already grown by 7.8% in the first half of the year.
FMIC and UA&P Capital Markets Research said economic data released in September reflected more economic activity as the government eases pandemic restrictions across the country.
In terms of employment, new jobs were added to the economy for the fourth straight month to a record 47.9 million. FMIC and UA&P Capital Markets Research expect employment to hit new records starting in September.
“With consumers and firms eager to normalize, the coming Christmas season should further boost employment, which saw more jobs, especially in trade and transport and storage sub-sectors,” FMIC and UA&P Capital Markets Research stated.
