Economic Experts Optimistic on PH Economy Despite Omicron

Experts have a positive outlook for the economy in the Philippines despite the COVID-19 surge that happened earlier this year.

In the latest issue of Market Call by First Metro Investment Corporation (FMIC) and the University of Asia and the Pacific (UA&P), they concluded that despite the rise of cases in January, more jobs were created, jumpstarting business expansion in the country.

The gross domestic product (GDP) of the Philippines rose to 7.7% in the last quarter of 2021 — a much higher output compared to the expected growth.

According to data, about 797,000 jobs were generated in December of last year.

The growth is expected to stay strong. While their report does not expect any change on Bangko Sentral ng Pilipinas’ (BSP) policy rates in the first half of this year.

BSP’s key policy rates were slashed of basis 200 points in 2020 to help the domestic stay afloat amidst the pandemic.

Moreover, BSP’s overnight reverse repurchase rate is at its lowest at 2%.

Meanwhile, BSP’s overnight deposit rate is at 1.5 percent and the overnight lending rate is at 2.5 percent.

However, despite the positive outlook on the nation’s economy, the report also anticipates the peso to lag against the US dollar.

As of writing, the peso is holding up around the 51-levels v.s. the US dollar. (ASC)