The economy could return to pre-pandemic growth levels by 2022 due partly to the impact of the May 2022 national polls.
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said inflation and interest rates are also expected to be back to pre-pandemic levels next year.
“Economic recovery could accelerate shortly before or during the 2022 election year (as early as the latter part of 2021 or about a year from now),” he said.
Last year, growth, as measured by gross domestic product (GDP), contracted by 9.5 percent due largely to the impact of the pandemic.
This is a far cry from the 6-percent growth the domestic economy has been posting for several years now.
Ricafort said he expects government spending, especially on infrastructure, to increase a few months before the national polls so as not to violate the election spending ban.