Philippine economy remains resilient, on to a steady growth path for 2022
The Asian Development Bank (ADB) is projecting a 6% growth for 2022, up from the bank’s September forecast of 5.5% in 2022. The Philippines remains on a steady growth path for this year following the country’s vaccination efforts and a sharp decrease in Covid19 cases.
“The Philippine economy has shown impressive resilience, growth momentum has clearly picked up on the back of the government’s vigorous drive to vaccinate Filipinos against the COVID-19 virus. Public spending on infrastructure and continued vaccination of the population will help the country further accelerate its recovery in 2022”, according to ADB Philippines Country Director Kelly Bird.
It was noted that the full year GDP for the Philippines grew 5.6% in 2021, exceeding the national government’s target of 5 to 5.5%. In the last quarter of 2021, the country’s economy grew by 7.7%, indicating a “strong signal that the Philippines is on track to rapid recovery”, according to Socioeconomic Planning Secretary Karl Kendrick Chua.
Filipino cash remittances increased by 5.1% to an all-time high of $31.42 billion in 2021 from $29.9 billion in 2020. The sustained growth in remittances was driven by the remittances sent by land-based workers with work contracts of one year or more, according to Bangko Sentral ng Pilipinas (BSP).
“Notwithstanding the global pandemic, cash remittances sent by overseas Filipinos across various regions remained robust,” BSP Governor Benjamin Diokno said.
The USA remained as the major source of cash remittances, with 40.5% share, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates, Canada, Taiwan, Qatar and South Korea.
Full-year inflation for 2021 averaged to 4.5%, higher than the 2.6% recorded in 2020, and beyond the BSP’s 2-4% target. BSP Governor Benjamin Diokno expects inflation to ease between 2-4% target for 2022 and 2023.
“Looking ahead, the BSP stands ready to maintain its accommodative monetary policy stance to support the economy’s recovery while guarding against any emerging risks to its price and financial stability objectives,” BSP Governor Benjamin Diokno said.
The Philippines just reopened to international tourists for the first time in two years in its bid to revitalize the economy which was badly affected by the pandemic. Tourists who have a no-visa arrangement with the Philippines are now welcome to enter the country provided that they are fully vaccinated and can show a negative Covid test result.
The country recorded a total of 163,879 international tourists from January to December 2021. The top 12 markets by volume are: USA, Japan, China, India, Canada, Korea, Turkey, UK, UAE, Saudi Arabia, Australia, Germany.