Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

Philippine growth forecast upgraded

by
July 21, 2022
in Investing News
0
Philippine growth forecast upgraded
0
SHARES
24
VIEWS
Share on FacebookShare on Twitter
Buildings are seen along EDSA in Quezon City, July 3. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE ASIAN Development Bank (ADB) on Thursday said it had raised its growth forecast for the Philippines this year, but warned that a slowdown in global growth and a spike in commodity prices could threaten recovery.

In its Asian Development Outlook 2022 Supplement, the multilateral lender said the country’s gross domestic product (GDP) is now projected to expand by at least 6.5% this year, higher than its 6% forecast made in April.

The latest estimate is at the low end of the government’s recently revised 6.5-7.5% target for 2022.

“The growth forecast for the Philippines is raised from 6% to 6.5% for 2022 on a stronger-than-expected Q1 performance, underpinned by rebounds in investment and household consumption,” the ADB said.

The latest GDP projection for the Philippines tied with Vietnam as the highest in Southeast Asia. It is also above the ADB’s 5% growth forecast for Southeast Asia, which was raised from 4.9%.

“The Philippine economy’s growth momentum has accelerated close to its ideal growth path. Strong domestic demand supported by a pickup in employment and remittance inflows, private investment expansion, and large public infrastructure projects will underpin the country’s recovery from the economic impact of the pandemic,” ADB Philippines Country Director Kelly Bird said in a statement.

The government further reopened the economy this year amid wider coronavirus disease 2019 (COVID-19) vaccination coverage and the “relatively mild” impact of the Omicron variant. In the first quarter, GDP grew by a better-than-expected 8.1%.

The ADB said mobility data showed work and recreation are now at pre-pandemic levels, while private sector indicators such as manufacturing, industrial production and imports also continued to expand.

However, the Philippine economy faces several risks to growth in the second half, such as “sharper-than-expected slowdowns in major industrial economies, possible sustained elevated global commodity prices, and tighter financial conditions,” the ADB said.

The government is poised to continue ramping up infrastructure spending, particularly on priority projects under the “Build, Build, Build” program. These include ADB-funded projects such as the Malolos Clark Railway, South Commuter Railway, EDSA Greenways Project, and Metro Manila Bridges.

Meanwhile, the ADB retained its Philippine GDP forecast at 6.3% for 2023, “as financial tightening and a broader pass-through of price pressures weigh on demand.”

This is below the government’s 6.5-8% target for 2023, but the second-highest in Southeast Asia, after Vietnam’s 6.7% GDP projection for 2023.

The multilateral lender also raised its average inflation forecast for the Philippines this year to 4.9% from the 4.2% estimate in April.

This is below the Bangko Sentral ng Pilipinas’ 5% average inflation forecast for the year.

Inflation accelerated to a near four-year high of 6.1% in June, bringing the six-month average to 4.4%.

For 2023, ADB hiked its Philippine inflation forecast to 4.3%, from 3.5% in April.

WAR, INFLATIONMeanwhile, the ADB cut its growth forecast for developing Asia this year and 2023, as the economic outlook darkened due to the protracted war in Ukraine, aggressive tightening by central banks, and a slowdown in China.

Reflecting the dimmer global outlook, the ADB downgraded its 2022 growth forecast for developing Asia to 4.6%, slower than the 5.2% projection in April.

Developing Asia is projected to grow by 5.2% in 2023, slightly lower than the previous 5.3% forecast.

“Risks to developing Asia’s economic outlook remain elevated and mainly associated with external factors. A substantial slowdown in global growth could hurt exports, manufacturing activity, and employment prospects, and cause turbulence in financial markets,” the lender said.

The ADB noted that aggressive monetary tightening by central banks, including the US Federal Reserve, might hurt growth and rattle financial markets. The Russia-Ukraine war may continue to drive up prices in energy and commodities, which will affect the region’s growth.

“Rising food prices and shortages, in particular, could threaten food security and heighten social tensions in some economies. From within the region, downside risks could arise from the potentially lingering effects on supply chains from (China’s) latest round of lockdowns and the country’s growth slowdown, which could hinder developing Asia’s growth momentum,” it added.

The ADB also raised the inflation forecast for this year to 4.2% from 3.7% and next year to 3.5% from 3.1% due to higher fuel and food prices.

“Inflation pressures in the region are, however, less than elsewhere in the world,” it said. — D.G.C. Robles

ShareTweetPin

Related Posts

Senate grills Rodriguez on approval procedures for sugar import order
Investing News

Senate grills Rodriguez on approval procedures for sugar import order

August 23, 2022
Trade dep’t expecting sugar price monitoring report by Friday
Investing News

Trade dep’t expecting sugar price monitoring report by Friday

August 23, 2022
Fisherfolk seek halt to reclamation on municipal fisheries
Investing News

Fisherfolk seek halt to reclamation on municipal fisheries

August 23, 2022
Supreme Court rules petitioners have no standing in PDS ‘monopoly’ case
Investing News

Supreme Court rules petitioners have no standing in PDS ‘monopoly’ case

August 23, 2022
ERC signals planned overhaul of regulatory practices via benchmarking exercise with regional counterparts
Investing News

ERC signals planned overhaul of regulatory practices via benchmarking exercise with regional counterparts

August 23, 2022
Malaysian trade official urges PHL to sign up for RCEP  
Investing News

Malaysian trade official urges PHL to sign up for RCEP  

August 23, 2022
Next Post
Cryptocurrencies and Investing: The Top Financial Literacy Education Gaps Across Generations

Cryptocurrencies and Investing: The Top Financial Literacy Education Gaps Across Generations

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

How to prevent compulsive gambling

How to prevent compulsive gambling

August 4, 2022
US Senate approves bill to fight climate change, cut drug costs in win for Biden

US Senate approves bill to fight climate change, cut drug costs in win for Biden

August 8, 2022
Axelum Resources Corp. to conduct annual stockholders’ meeting on July 29 via remote communication

Axelum Resources Corp. to conduct annual stockholders’ meeting on July 29 via remote communication

June 27, 2022
Growth recovery, declining births, and rising power demand

Growth recovery, declining births, and rising power demand

August 15, 2022
SC issues restraining order vs Comelec in favor of disqualified Agoo town candidate 

SC issues restraining order vs Comelec in favor of disqualified Agoo town candidate 

July 6, 2022
Dubai Investment Fund Continues to Explore Dubai’s Technology Sector

Dubai Investment Fund Continues to Explore Dubai’s Technology Sector

August 16, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.