MANILA : The Philippine economic system expanded sooner than anticipated in the fourth quarter of 2021, buoyed by sturdy client spending, with the government optimistic that development will speed up this yr regardless of a resurgence in coronavirus circumstances and inflation dangers.
The Southeast Asian nation’s gross home product rose 7.7per cent in the December quarter from a yr earlier, sooner than a downwardly revised 6.9per cent enlargement in the earlier quarter, and beating a 6.0per cent forecast in a Reuters ballot.
That took full-year GDP development to five.6per cent, exceeding the government’s 5.0per cent-5.5per cent goal and marking a pointy rebound from a file 9.6per cent contraction in 2020 amid extended COVID-19 lockdowns.
The economic system grew 3.1per cent in the December quarter from the previous three months.
“The door to economic recovery is now fully open,” Socioeconomic Planning Secretary Karl Kendrick Chua informed a briefing, as he predicted development would speed up this yr. “We are on the correct path to a resilient recovery.”
The Philippines is aiming to realize GDP development charges of seven.0per cent-9.0per cent for 2022 and 6.0per cent-7.0per cent for each 2023 and 2024, banking on an accelerated vaccination drive to permit the economic system to reopen additional.
Household consumption rose 7.5per cent in the fourth quarter from a yr earlier, up from a 7.1per cent improve in the third quarter, and the most important contributor to total development.
Growth in government spending, nonetheless, slowed to 7.4per cent from the September quarter’s 13.8per cent.
The three most important financial sectors – agriculture, business and companies – posted optimistic development charges of 1.4per cent, 9.5per cent, and seven.9per cent, respectively, in the fourth quarter.
The Philippine central financial institution, which has stored its key price at a file low of two.0per cent since November 2020, has vowed to prioritize an financial restoration, suggesting it won’t elevate rates of interest anytime quickly.
The government has, nonetheless, reimposed coronavirus curbs in the capital area and plenty of provinces because the begin of the yr as a result of a resurgence in infections pushed by the extra transmissible Omicron variant.
(Writing by Enrico Dela Cruz; Editing by Ed Davies)