PH urged to reopen economy with caution | Inquirer Business
Close  

PH urged to reopen economy with caution

By: - Reporter / @bendeveraINQ
/ 04:07 AM October 06, 2021

Think tank Moody’s Analytics on Tuesday said the Philippines and its heavily populated neighboring countries in Asean were facing risks from new COVID-19 strains, hence should proceed with caution while further reopening their economies.

“While the current wave of the Delta variant is ebbing, the rapid response by policy-makers to ease movement restrictions could set the region up for another as-yet-unknown variant. The Philippines, Vietnam, Indonesia and Thailand are the most vulnerable given their low vaccination rates to date,” Moody’s Analytics chief Asia-Pacific economist Steven Cochrane said in a report.

ADVERTISEMENT

Moody’s Analytics noted that the Philippines was already “instituting more targeted movement-control orders, even as its daily caseload and coronavirus-related fatalities remain very high.”

Granular lockdowns

The government now implemented granular lockdowns instead of blanket quarantine restrictions, partly to encourage more consumer spending.

FEATURED STORIES

Moody’s Analytics projected the Philippines’ gross domestic product (GDP) growth in 2021 at 4 percent, the lower end of the government’s downgraded 4 to 5 percent target range.

For 2022, Moody’s Analytics estimated the Philippines’ growth rate at a faster 6.4 percent, although below the government’s 7-9 percent goal.

Alongside higher economic growth, the unemployment rate was expected to improve to 8.1 percent this year and 6.9 percent next year from the 15-year high of 10.3 percent in 2020.

But Moody’s Analytics said that across the Asia-Pacific region, “a greater near-term threat is rising inflation.”

It projected the Philippines’ headline inflation to average 4.1 percent this year, above the government’s 2-4 percent target band of manageable price hikes.

Inflation in the Philippines was seen returning to a within-target 3.5 percent next year.

“At this point, inflation exceeds central bank target rates in only four Asia-Pacific countries—Australia, New Zealand, South Korea and the Philippines … With the Philippines’ position as the weakest-performing Asia-Pacific economy, its monetary policy will remain on hold for most of the coming year,” Moody’s Analytics said. INQ

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, economy, Philippines
For feedback, complaints, or inquiries, contact us.

Curated business news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2021 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.