PH likely to hit 2022 growth targets — Moody’s Analytics
Financial services company Moody’s Analytics believes the Philippine economy has a high chance of achieving its full-year growth target of 6.5% to 7.5% by the end of 2022, despite soaring inflation and a sluggish jobs market.
This statement follows the Philippine Statistics Authority’s (PSA) report of a 7.4% GDP expansion in the country during Q2.
Meanwhile, Socioeconomic Planning Secretary Arsenio Balisacan said the economy would need to grow by 5.3% in the second half to achieve the 6.5% target.
“To hit the 7.5% goal, he said GDP would have to expand by an average of 7.2% in the second semester,” he added.
Moody’s Analytics added that policy rate hikes would likely impact growth this year.
Meanwhile, as inflation continues to bite, household spending may be vulnerable in the second half.
PSA’s second-quarter data showed household consumption expanded 8.6% year-on-year, but contracted 2.7% quarter-on-quarter, reflecting the impact of soaring inflation on domestic demand.
