The Asian Development Bank maintained a more upbeat forecast for the growth of the Philippines’ gross domestic product this year, thanks to a reopened economy, while again lowering the forecast across developing economies in Asia.
In July the ADB revised its forecast for full-year growth of the Philippine economy to 6.5 percent from the 6 percent announced in April.
On the other hand, the multilateral lender now sees growth across developing Asia lower at 4.3 percent compared to earlier forecasts — 4.6 percent in July and 5.2 percent in April.
“The normalization of socioeconomic activity will usher the Philippine economy to a steady, pre-pandemic pace of expansion,” ADB Philippines country director Kelly Bird said in a statement.
Still, the report said that a sharper slowdown in major advanced economies, heightened geopolitical tensions, and possible sustained elevated global commodity prices due to the Russian invasion of Ukraine could make actual growth of the Philippine economy lower than its forecast.
These factors, in addition to lockdowns resulting from China’s zero-COVID policy, also prompted the forecast downgrade for the entire region.
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Rate hikes, Ukraine war, China woes dim Asia growth outlook – ADB