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Philippines raises 2021 growth forecast after strong Q3, faster vaccination

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="People visit the SM By the Bay at the Mall of Asia George Calvelo, ABS-CBN News" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/life/12/14/20211119-covid-sm-moa-gc-5417.jpeg"/><figcaption>People visit the SM By the Bay at the Mall of Asia grounds in Pasay City on November 19, 2021. <em>George Calvelo, ABS-CBN News</em></figcaption></figure></div><p>MANILA (UPDATE) - Philippine economic managers have raised the country&#x27;s growth forecast for 2021 after third-quarter economic expansion beat forecasts, and as the country hastens the rollout of its COVID-19 vaccination program. </p><p>The cabinet-level Development and Budget Coordination Committee said it now expects gross domestic product to grow 5 to 5.5 percent this year, up from a revised 4 to 5 percent growth announced in <a href="https://news.abs-cbn.com/business/08/18/21/ph-growth-target-lowered-to-4-5-pct-amid-delta-lockdowns">August</a>. </p><p>Economic managers said they revised the 2021 growth forecast after GDP expanded 7.1 percent from July to September, beating analysts&#x27; expectations. </p><p>&quot;As we continuously relax restrictions and increase mobility, economic performance is expected to accelerate further in the last quarter of the year,&quot; the DBCC said.</p><p>The Philippines is also expected to regain its 2019 economic output by next year, with the economy seen growing 7 to 9 percent growth for 2022 and 6 to 7 percent growth for 2023 and 2024.</p><p>&quot;With our strong economic performance in 2021, the DBCC is optimistic that the country’s GDP will return to its pre-pandemic level by 2022,&quot; the DBCC said.</p><p>Socioeconomic Planning Secretary Karl Chua said that the economy has already averaged 4.9 percent growth by the third quarter, and the fourth quarter expansion is expected to be even faster.</p><p>&quot;I do not know the exact number but I think Q4 growth should also be 7 to 8 percent year-on-year to hit the 5 to 5.5. More or less. that is where we are headed, I hope we can do much better,” Chua said. </p><p>Budget Undersecretary Rolando Toledo said the DBCC also acknowledges the threat of the Omicron COVID-19 variant, as well as the possibility of more variants like it in the future. </p><p>&quot;While the threat of new COVID-19 variants may persist in the short-term, we are now in a much stronger position to manage possible spikes in cases and safely reopen the economy to alert level 1 in January 2022. Our effective management of COVID-19 will solidify our recovery and sustain our growth beyond this pandemic,” Tolentino said. </p><p>Due to what observers said was one of the longest and strictest lockdowns in the world, the Philippine economy suffered its worst recession since World War 2, <a href="https://news.abs-cbn.com/business/04/08/21/ph-lowers-2020-gdp-growth-rate-negative-96-pct">shrinking 9.6 percent</a> in 2020.</p><p>After 5 straight quarters of year-on-year contraction, the economy began expanding again in the second quarter. </p><p>The DBCC&#x27;s upward revision follows the <a href="https://news.abs-cbn.com/business/12/14/21/adb-raises-philippine-economic-growth-forecast-to-51-percent-in-2021">Asian Development Bank&#x27;s</a> raising of its growth forecast announced earlier on Tuesday. </p><p>The World Bank also raised its growth forecast for the Philippines to 5.3 percent from 4.3 percent. </p><div><strong>With a report from Warren de Guzman, ABS-CBN News</strong></div><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1861644" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

Philippine economic managers now expect the country to grow 5 to 5.5 percent, up from an earlier forecast of 4 to 5 percent, after a strong third quarter expansion.