PH GDP to increase by 5.5% – GlobalSource
Research consultant GlobalSource Partners increased its Gross Domestic Product (GDP) GDP for the Philippines from 3.5% to 5.5% this year and in 2022. However, the upcoming elections and the “growing inequality” may halt the country’s economic recovery.
In a report, GlobalSource analysts Romeo Bernardo and Maria Christine Tang said that they are expecting the “unevenness in growth across income groups and industries reflecting firm and labor market scarring to continue and weigh on activity further out,”
The pair added that a pre-pandemic level of recovery could only happen by late 2022.
The latest forecasts presume that the current vaccines will protect the population from the Omicron COVID-19 variant from South Africa. The think tank noted that the national elections must also be credible for the economy to flourish.
GlobalSource added that the “sustained growth” of Business Process Outsourcing (BPO) and digital transformation industries, as well as the resilience of remittances will boost economic recovery.
Meanwhile, GlobalSource forecasts that inflation will hit 4.5% this year before lowering to 3.5% in 2022.
