The World Bank on Tuesday raised its forecast for Philippine economic growth to 5.3 per cent despite remaining uncertainty over the COVID-19 pandemic.
The growth projection for 2021 was up from 4.7 per cent in the previous World Bank assessment in June.
World Bank said in 2022, gross domestic product growth was expected to accelerate to 5.8 per cent, down from the initial forecast of 5.9 per cent in June.
Government spending on infrastructure was expected to keep the economy afloat, boosted by wider vaccinations that would lead to greater personal mobility and the revival of business.
Household consumption was also expected to recover, barring a new surge in COVID-19 cases, the bank added.
Ndiame Diop, World Bank country director said “the new variant has added a layer of uncertainty but economic re-opening, along with progress in vaccination, is clearly strengthening domestic dynamism and market confidence.
“As the recovery gains traction, it will be important to enhance private sector participation in the recovery by deepening current efforts to make the country’s business environment favourable to job creation.’’
The Philippines has faced two surges of COVID-19 infections since 2020. In both instances, the government imposed strict mobility restrictions, resulting in a 15-month recession before the economy rebounded in the second quarter of this year.
On Monday, the Department of Health said the country’s total COVID-19 caseload was at more than 2.83 million, while the death toll was up by 113 to 49,499. (dpa/NAN)