An update to the Asian Development Outlook (ADO), the ADB's widely followed economic publication, maintained the growth forecasts for the Philippines at 4.5 per cent in 2021 and 5.5 per cent in 2022, as recovering domestic demand and improving global trade align with the ADO's projections announced in April.
According to the report, the Philippines' economic growth in 2021 and 2022 will be supported by sustained growth in public infrastructure spending, improving consumer confidence, and progress in the national Covid-19 vaccination program.
The report said the main risk to the outlook is the spread of newer, contagious Covid-19 variants, which may result in the return of stricter containment measures and may stall economic activity.
"The economy has regained its footing and is on the right growth path. But the recovery remains fragile due to the threat posed by more infectious Covid-19 variants," reported Xinhua News Agency quoting ADB Philippines Country Director Kelly Bird.
Bird said that vaccination remains key to the economy's safe reopening.
The Philippines now has over 2.4 million confirmed Covid-19 cases, including 37,074 deaths. The government has focused on vaccinating Filipinos living in urban areas such as Metro Manila, which records the highest incidences of Covid-19 cases.
The report said the rollout of the national vaccine program has accelerated in recent months and is therefore making good progress towards meeting the government's year-end targets.
The Philippines has administered over 42 million doses of Covid-19 vaccines, and more than 18.8 million people have been fully vaccinated. The government aims to vaccinate up to 77 million people this year.
Also according to the ADO update, the inflation forecasts remain at 4.1 per cent in 2021 and 3.5 per cent next year.
With inflation expected to fall back within the central bank's 2 per cent to 4 per cent target range and a gradual recovery in domestic demand, the government's monetary policy stance is expected to stay accommodative. - Bernama