ADB Forecasts 4.5% Growth for PH Economy in 2021

The Asian Development Bank (ADB) sees a 4.5% growth for the Philippine economy in 2021 despite challenges brought about by the COVID-19 pandemic.

The country’s economic growth forecast is in part due to continuous investments in infrastructure, and the further ramping up of vaccination efforts for the latter part of 2021.

The growth projection also rests on the economic recovery of the rest of the world, according to the Asian Development Outlook (ADO) 2021.

Moreover, ADB also expects a 5.5 percent growth in the Philippine economy in 2022.

The current projection is lower than the previous forecast of the ADB last December 2020 that expected a 6.5 percent growth forecast for the country.

The reduction in the growth projection is due to the reimposed quarantine restrictions in the country’s National Capital Region and neighboring provinces, coupled with the general uncertainty on how the pandemic will play out in the remaining part of 2021.

Meanwhile, the inflation rate forecast of the country according to ADB projections is to rise to 4.1 percent for 2021, citing rising prices of commodities globally, coupled with challenges brought about by the African swine fever.

The rise of the inflation rate to 4.1 is up from the inflation rate of 2.6 percent in 2020. (GFB)