MANILA, Sept 22 (NNN-PNA) – The Philippine economy is recovering but remains “fragile” because of periodically tighter COVID-19 mobility restrictions, particularly in Metro Manila, the Asian Development Bank (ADB) said today.
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 percent in 2021, and 5.5 percent in 2022, as recovering domestic demand and improving global trade align with the ADO’s projections announced in Apr.
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 programme.
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,” ADB Philippines Country Director, Kelly Bird, said in a statement.
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 programme accelerated in recent months and is making good progress towards meeting the government’s targets.
The Philippines administered over 41.79 million doses of 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 percent in 2021 and 3.5 percent next year.
With inflation expected to fall back within the central bank’s two to four percent target range, and a gradual recovery in domestic demand, the government’s monetary policy stance is expected to stay accommodative.– NNN-PNA
