Philippine Economy Expected to Grow 7.4% in 2022: ADB

Manila: The Philippine economy is forecast to grow faster than previously expected in 2022 supported by stronger-than-expected domestic demand spurred by rising employment and a recovery in tourism after the country lifted COVID-19 mobility restrictions, according to a report released today by the Asian Development Bank (ADB).
 
The latest supplement to the Asian Development Outlook (ADO) 2022 says the Philippine economy will grow 7.4% in 2022, up from the bank’s September forecast of 6.5%. Gross domestic product (GDP) growth for 2023 is expected to slow to 6.0% from the previous forecast of 6.3%.
 
"The Philippine economy has shown strong underlying growth momentum and  resilience in 2022 and this is expected to continue in 2023, with GDP growth converging towards its longer term growth rate of about 6%," said ADB Philippines Country Director Kelly Bird in a media release on Wednesday.

"There are downside risks to growth in 2023, including inflation stickiness, further increases in interest rates, and a sharper than expected slowdown in GDP growth in advanced countries," Bird added.
 
Growth in the Philippines will be at the high end of the range as compared with those of its Southeast Asian neighbors. The 2022 growth forecast for the region was raised to 5.5% from the previous 5.1% despite the overall dimmed outlook for Asia and the Pacific, according to the report. GDP growth in Southeast Asia is expected to slow to 4.7% in 2023.
 
Upward pressures on commodity prices, including oil which will weigh heavily on the predominantly oil-importing Philippines, are expected to be sustained in 2023 with continued uncertainty arising from the Russian invasion of Ukraine. Inflation is expected to quicken to 5.7% this year from the previous forecast of 5.3% before slowing in 2023, with the forecast for next year maintained at 4.3%.
 
The government has said that it expects to continue to invest on its flagship infrastructure projects to spur employment and lay the foundations for a more vibrant and resilient economy. ADB is helping finance some of these priority projects, such as the Malolos Clark Railway Project and South Commuter Railway Project, both part of the North–South Commuter Railway System that aims to provide a safe, fast, and efficient transportation link between Metro Manila and northern and southern Luzon provinces.
 
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