Fitch Solutions upgraded its gross domestic product (GDP) forecast for the Philippines, following the strong 7.1 percent performance it showed in the third quarter 2021.
“We at Fitch Solutions now forecast the Philippine economy to grow by 4.5 percent in 2021 and 6.5 percent in 2022, revised from 4.2 percent and 6.8 percent respectively,” it said.
“A gradual relaxing of domestic mobility restrictions and continued support measures from policymakers helped propel activity, bringing the economy closer to its pre-pandemic output levels,” it added.
While there are signs of a sustained recovery in the succeeding quarter, the Philippines remain vulnerable to Covid-19 outbreaks amid disparities in regional vaccine rollouts and lower efficacy rates of the administered shots, Fitch said.
Strong consumption rebound
Nevertheless, the Fitch unit sees a higher private consumption in 2021 with 3.7 percent from its previous 3.5 percent outlook amid the expected easing in domestic restrictions in the last three months of the year.
Presidential Communications Secretary Martin Andanar said the latest GDP data is a welcome development, reflecting the Duterte administration’s efforts to manage risks amid the pandemic.
“This noteworthy achievement affirms the Duterte administration’s successs in strategically balancing, managing and sustaining the growth and operation of our economy, while addressing and containing the impacts of the Covid-19 pandemic,” Andanar said.
“May our economic growth encourage everyone to participate in our national Covid-19 vaccination program as we can see the tremendous and positive impact it has on our recovery from the pandemic as one nation,” he added.