ADB predicts 7.4% expansion for the Philippines in 2022

MANILA, PHILIPPINES (14 December 2022) — According to a report released today by the Asian Development Bank, the Philippine economy is projected to grow faster than previously anticipated 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 (ADB).

 

The newest addition to the Asian Development Outlook (ADO) 2022 predicts that the Philippine economy will expand by 7.4% in 2022, an increase from the bank’s September projection of 6.5% growth. The growth of the gross domestic product (GDP) is anticipated to decelerate to 6.0% in 2023, down from the prior projection of 6.3%.

 

“The Philippine economy has shown strong underlying economic momentum and resilience in 2022, and this is anticipated to continue in 2023, with GDP growth converging to its longer-term growth rate of about 6%,” said ADB Philippines Country Director Kelly Bird. “There are negative risks to growth in 2023, including price persistence, more rises in interest rates, and a greater than anticipated decline in GDP growth in advanced nations,”

In comparison to its Southeast Asian neighbors, the Philippines will see growth at the upper end of the spectrum. Despite the gloomier view for Asia and the Pacific as a whole, the 2022 growth prediction for the area has been increased from 5.1% to 5.5%. In 2023, Southeast Asia’s GDP growth is projected to drop to 4.7%.

 

In 2023, uncertainties stemming from the Russian invasion of Ukraine is anticipated to maintain upward pressures on commodity prices, notably oil, which would weigh hard on the largely oil-importing Philippines. Inflation is anticipated to increase to 5.7% this year, up from the prior estimate of 5.3%, before falling in 2023, with the projection for 2020 remaining at 4.2%.

 

The administration has said that it intends to continue investing in its key infrastructure projects to stimulate jobs and build a more robust economy. ADB is assisting in the financing of some of these priority projects, including the Malolos Clark Railway Project and South Commuter Railway Project, which are both components of the North–South Commuter Railway System, which aims to provide a safe, fast, and efficient transportation link between Metro Manila and the northern and southern Luzon provinces.

 

In Metro Manila, the ADB is funding the EDSA Greenways Project, which intends to enhance and modernize the pedestrian experience along the key EDSA route, and the Metro Manila Bridges Project, which aims to alleviate traffic congestion in the metropolitan area, particularly in Eastern Manila.

 

ADB is dedicated to establishing a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while continuing its fight against extreme poverty. It was founded in 1966 and is owned by 68 people, 49 of whom are from the area.

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