ADB raises Philippines' growth forecast due to improving pandemic situation

MANILA (Xinhua): The Philippine economy is forecast to remain on a steady growth path in 2021 and 2022, supported by an acceleration in the government's Covid-19 vaccination programme and a sharp drop in coronavirus cases, according to an Asian Development Bank (ADB) report released on Tuesday (Dec 14).

The supplement to the Asian Development Outlook 2021 says the Philippine economy will grow by 5.1 per cent in 2021 and 6.0 per cent in 2022, up from a previous forecast of 4.5 per cent in 2021 and 5.5 percent in 2022, respectively.

"The Philippine economy has shown impressive resilience," said the ADB's Country Director for the Philippines Kelly Bird, adding that the "growth momentum has clearly picked up on the back of the government's vigorous drive to vaccinate Filipinos against the Covid-19."

"Public spending on infrastructure and continued vaccination of the population will help the country further accelerate its recovery in 2022," he added.

The inflation outlook for 2021 and 2022 is 4.4 per cent and 3.7 per cent, respectively, mainly due to rising fuel prices.

The Manila-based bank said the vaccination has allowed the economy to reopen slowly, boosting consumer and business confidence.

As of Dec 8, more than 57 million Filipinos, or nearly 65 per cent of its target population, had received at least one dose of Covid-19 vaccines.