The local economy could improve this year given the faster vaccination program rollout to address the high number of coronavirus disease 2019 (Covid-19) infections, targeted containment measures, and sustained implementation of stimulus programs.
Pandemic-related developments, however, prompted Asean+3 Macroeconomic Research Office (AMRO) to cut its 2021 growth forecast for the Philippines to 6.4 percent from 6.9 percent, and the 2022 projection to 6.8 percent from 7.9 percent.
AMRO chief economist Dr. Hoe Ee Khor said, “For most countries in the region, including the Philippines, one of the priorities now is to roll out the vaccination as quickly as possible in order to contain the infection so they can open up the economy more fully and allow the economy to recover.”
He said fiscal support is critical “and fortunately, in the case of the Philippines, we do see ample fiscal space.”
Based on the AMRO report on the country released during the day, the domestic economy continues to post improvements after registering its decades-low contraction of 16.9 percent in the second quarter of 2020.