Philippine economy is seen to soar in 6.6% in 2022, Oxford Economics says

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Oxford Economics says the Philippines is one of the Asia Pacific economies that will grow quicker next year.

The research group stated in a report issued on Friday that the Philippines, Japan, Indonesia, Malaysia, and Thailand will all enjoy stronger economic development in 2022 after being disrupted by massive pauses combating the coronavirus disease 2019 (Covid-19) epidemic this year.

According to the study organization, once vaccination programs achieve their goal levels, most economies are shifting to a “living with Covid” strategy.

“Indeed, across much of EM (emerging market) Asia,” it pointed out, “there is a sense of wanting to move on, as hinted at by the marked improvement in mobility as their respective recent virus outbreaks have ebbed.”

Furthermore, Oxford Economics suggests gradually lifting existing restrictions on high-contact domestic service sector operations and reopening to inbound and outbound tourists, but the new variation may lead these plans to be postponed.

“Indeed, given the scope for catch-up from the worst of the crisis, we expect Indonesia, Malaysia, Philippines, and Vietnam to all grow by 6 percent or more next year (nearly double the pace achieved in 2021) …,” the firm said.

Given that the Asia Pacific region trails well behind the US and Europe in these areas, it expects that many Asian economies will have the opportunity to expand in 2022, even while the US and Europe stall.

It predicts a 6.6 percent gain in Philippine GDP in 2022, up from a 4.6 percent increase this year. The forecast falls short of the government’s goal of 7-9 percent growth in the following year.