Sluggish recovery of PH consumption seen
UK-based think tank Oxford Economics projects that the growth in household consumption in the Philippines this year will be among the slowest in Asia.
Across Asia-Pacific, most economies saw household savings rise last year, but in the case of the Philippines, Oxford Economics’ projections showed private consumption will grow by less than 3 percent in 2021, only exceeding the over 1-percent growth forecast for Japan.
As of the first quarter of 2021, the Philippines had the highest unemployment rate among 12 Asia-Pacific economies covered by Oxford Economics’ report.
As a result, household consumption—which accounted for about three-fourths of the prepandemic economy—contracted by 4.8 percent year-on-year during the first quarter, although a slower drop compared to previous quarters as restrictions on movement of people and goods as well as economic activities gradually eased.
The Philippines’ jobless rate of 7.1 percent in March was nonetheless the lowest since the pandemic began, but joblessness likely picked up again in April when National Capital Region Plus accounting for half of the economy reverted to two weeks of the most stringent enhanced community quarantine.
But in terms of lockdown stringency, the Philippines was placed by Oxford Economics in the bottom of the pack as the recent surge in COVID-19 cases in Taiwan, Vietnam, India, Hong Kong, Malaysia, Indonesia, Thailand, Japan and Singapore prompted authorities in these countries to impose stricter quarantines compared to restrictions last year.
