Metro Manila (CNN Philippines, October 7) — A regional macroeconomic surveillance organization has lowered its growth forecast for the Philippine economy this 2021 as the country continues to weather the impact of the COVID-19 pandemic.
The ASEAN+3 Macroeconomic Research Office now expects economic output to grow by 4.3% this year, its regional economic outlook update published this month revealed.
A far cry from its 6.9% projection in March, AMRO’s latest expectation still falls within the economic team’s downscaled 4-5% target band for 2021.
AMRO cited the Philippines as an economy in the region “experiencing weaker-than-expected growth as a result of resurgent infections.” The country has observed significant upticks in infections particularly from March to April and August to September driven by more contagious coronavirus variants.
The organization also said it expects milder growth next year. From 7.8%, AMRO now forecasts the economy to expand by 6.7% in 2022.
AMRO noted that the Philippines — similar to Thailand — “continued to provide fiscal support as their economies struggle with high COVID-19 caseloads and challenging vaccination progress.”
The Philippines has administered over 48.39 million COVID-19 vaccine doses so far. More than 22.65 million Filipinos are already fully vaccinated, corresponding to a 29.37% coverage rate.
While the organization lowered its growth projection for the entire region this year from 6.7% to 4.9%, it issued a 5% forecast for 2022 – slightly up from its prior 4.9% expectation.
