The low vaccination rate in the country amid growing concerns over emerging new virus strains, the latest of which is the Omicron variant, may yet derail the economy’s comeback.
“Economic activity is vastly improving,” Bangko Sentral ng Pilipinas Governor Benjamin Diokno said. “Yet, the overall momentum of the economic recovery remains foggy as long as a big part of the population remains unvaccinated and there is still a possible emergence of more virulent variants.”
According to Our World in Data, a project of the UK-based Global Change Data Lab, there are about 35.7 million fully vaccinated people in the Philippines, just one-third of the population.
“Nevertheless, the sustained implementation of targeted fiscal initiatives, as well as the acceleration of the vaccination program, should help boost market confidence and economic recovery,” Diokno said during the 10th Arangkada Philippines Forum, held online by the Joint Foreign Chambers of Commerce of the Philippines.
Sans any hitches, strong growth should still be expected in 2022, he said.
He noted that since the start of the year, the domestic economy has grown by an average 4.9 percent.
In 2020, with the full brunt of the pandemic and mired in recession, the Philippine economy contracted by 9.6 percent. Diokno believes the country’s macroeconomic fundamentals remained “sound.”
The government assumes that the full-year result for 2021 will be within the range of 4 percent to 5 percent. In 2022, the assumption is that GDP growth will be within 7 percent to 9 percent.