A report by the Asian Development Bank (ADB) shows that domestic demand will pick up strongly. The easing of tighter travel restrictions to curb the spread of COVID-19 will help the Philippine economy grow by 6.5% in 2022.
The ADB’s Asian Development Outlook 2022 Update forecasts economic growth of 6.3% in the Philippines in 2023, as both monetary tightening and increased inflation will affect domestic demand.
The ADB projects inflation in the Philippines to reach 5.3% in 2022, driven by rising energy and commodity prices in global markets.
Natural disasters affecting the country’s agricultural production are expected to drive up food prices through the end of the year.
In addition, the ADB maintains its inflation forecast for 2023 at 4.3%, as continued economic growth will stabilize inflation and energy prices will tend to decline.
ADB’s director for the Philippines said the recovery in tourism and private investment, combined with continued government spending on major infrastructure and remittances from Filipinos abroad, will help support the Philippines’ economic recovery this year.