WB upgrades Philippines’ 2022 growth forecast to 7.2%

Vehicles on a road in Manila, the Philippines (Photo: AFP/VNA)

Hanoi (VNA) – Driven by pent-up demand from consumers, the Philippine economy is forecast to grow 7.2% in 2022 before tapering off to an average of 5.7% in 2023, according to a report released by the World Bank on December 6.

The Philippines Economic Update said this year’s forecast rides on the momentum of a 7.7% growth rate in the first three quarters of 2022, buoyed by the removal of remaining restrictions on people’s mobility and business operations and the recovery of incomes and jobs.

The latest project is higher than the 6.5% forecast issued by the WB in September.

The report said the economy stays resilient despite an external environment full of challenges, noting that it is also facing an internal challenge which is high inflation, standing at an average of 5.4% over the last 10 months and hitting 7.7% in October.

The WB update revised the GDP growth forecast for 2023 down to 5.7% from the previous projection of 5.8%, premised on reduced consumer demand, alongside high inflation and interest rates that are expected to temper household spending and investments.

In addition, as global growth is expected to decelerate next year, external demand from advanced economies, which are key buyers of Philippines merchandise exports, will be subdued, the report noted./.

VNA