The government of the Philippines maintained health restrictions linked to the pandemic for longer than the average period in emerging countries, with some regions still under lockdown until April 2022. The rebound in activity is not yet finished, and the strength of consumer spending, still supported by remittances, should help to offset the effects of higher inflation and the slowdown in global growth. Economic growth is expected to slow in 2023, but should remain solid [...]
The health crisis is barely improving in the Philippines. After a particularly severe second wave, the number of new Covid-19 cases seems to have levelled off, albeit at a high level. Yet the full vaccination rate is very low, which means that the tight health restrictions which must be kept in place are weighing on domestic demand and the tourism sector. After contracting by more than 9% in 2020, GDP should rebound moderately in 2021 [...]
The coronavirus crisis has hit a fast-growing economy, which expanded by more than 6% year-on-year in H2 2019 and looked set to continue at the same pace in 2020 [...]
In the Philippines, real GDP growth should reach 6.7% again in 2018, which is close to its long-term potential. The economy is showing signs of overheating: inflation is rising and will exceed the central bank’s target range in 2018, and the current account deficit has widened slightly. However, in the short term, the risks of overheating should remain limited, and the country benefits from solid macroeconomic fundamentals [...]
With a population of about 100 million people, the Philippines, which comprises more than 7,000 islands, is the 12th most populous country in the world. An additional 12 million Filipinos live overseas, representing one of the world’s largest diasporas. Economic transformation efforts have been effective over the last decade, and the country enjoyed macroeconomic stability, robust economic growth, a solid external financial position, moderate fiscal deficits and declining government debt-to-GDP ratios. The Philippines have been hard hit by the Covid-19 crisis. However, real GDP is projected to continue to grow strongly in the medium term (above 6%), supported by domestic demand. New challenges have emerged, as the external environment has become less growth-supportive, and overheating risks have emerged as the current account deficit continues to widen and credit growth remains strong - although from a low base. In addition, poverty and inequality challenges remain.
