PH to keep underperforming this 2022 – DBS
The Philippines will continue to be an underperformer in the Association of Southeast Asian Nations (ASEAN) region this year due to the lingering effects of the pandemic, according to Singapore-based bank DBS.
In a report, DBS said that it expects the country to lag behind its neighboring nations by the second half of 2022 in terms of restoring its pre-pandemic Gross Domestic Product (GDP) levels.
The bank stated that their base case growth outlook of 6.5% for the Philippines took into account the risk of potential “slowdowns and sporadic tightening” caused by the COVID-19.
The DBS added that localized and calibrated virus restrictions are still having a detrimental impact on retail and recreation mobility, as evidenced by the steep drop experienced during the Omicron wave in January.
However, the DBS added that the country could “reclaim much of their lost ground” by the second half of the year when regulated caseloads and increased vaccination rates could allow for a more robust economic reopening.
DBS added authorities could begin to remove some restrictions over the coming months as cases soar to more manageable levels and immunizations surge.
On a positive note, DBS predicts that the Philippines’ economic policies will remain supportive of sustainability and growth.
