ADB raises growth forecast for Philippines to 6.5%. (Photo: The Star)The Asian Development Outlook 2022 Supplement saysthe Philippine economy will grow at least 6.5% in 2022, up from the bank'sApril forecast of 6%.
The growth projection for 2023 remains at 6.3%.Downside risks to growth in the second half of 2022 may come fromsharper-than-expected slowdowns in major industrial economies, possiblysustained elevated global commodity prices, and tighter financial conditions.
The Philippine economy's growth momentum hasaccelerated close to its ideal growth path, said the Manila-based bank'sPhilippines Country Director Kelly Bird.
Strong domestic demand supported by a pick-up inemployment and remittance inflows, private investment expansion, and largepublic infrastructure projects will underpin the country's recovery from the economicimpact of the pandemic, Bird added.
The ADB said wider COVID-19 vaccine coverage,with adolescents among those getting inoculated, and relatively mild healthimpacts from the Omicron variant have allowed the government to relaxrestrictions, which, in turn, spurred a resumption in expanded operations formost private businesses.
The unemployment rate in the country falls near pre-pandemiclevels, which is 6% in May 2022, downfrom 7.7% a year earlier.
The ADB forecasts inflation to quicken to 4.9% and 4.3% in 2022 and 2023, respectively, on the back ofhigher global commodity prices, up from the ADB's April forecast of 4.2% in 2022 and 3.5% in 2023.
The Philippine government's economic team slashedits GDP target band for 2022 to 6.5 to 7.5% from 7 to 8% early this month due to "recent externaland domestic developments."/.
VNA
