The Philippine economic recovery from the COVID-19 pandemic continues to gain traction. AMRO forecasts the GDP to grow strongly by 6.9 percent in 2022 and moderate to 6.5 percent in 2023. However, external uncertainties and headwinds heightened in early 2022, posing additional challenges to policy implementation and economic prospects.
In 2021, the economic recovery was mainly driven by stronger investments and household consumption. The recovery is expected to broaden this year, with the private sector taking the lead in driving growth on the back of continued policy support.
Inflation picked up in the early part of the year, owing to rising oil and food prices. Given the supply disruptions from the war in Ukraine, AMRO projects the headline CPI inflation to rise to 4.4 percent in 2022 before declining to 3.8 percent in 2023.
These conclusions are highlighted in AMRO’s 2021 Annual Consultation Report on the Philippines.