MANILA, Philippines The Philippine economy grew by 7.7% in the fourth quarter of 2021, as loosening mobility restrictions boosted consumer spending and corporate activity, bringing full-year growth to 5.6 percent and raising hopes for a quick recovery this year.
“This year’s growth was far quicker than most analyst predictions, putting the country among the fastest-growing in the area. “Despite the impact of Typhoon Odette, this is a strong indication that we are on pace to speedy recovery,” Socioeconomic Planning Secretary Karl Kendrick Chua said in a press briefing Thursday, reading a joint statement from the government’s economic managers.
Chua cited Bloomberg data to claim that Singapore’s GDP grew by 7.5 percent last year, Vietnam’s by 2.6 percent, while the rest of the Association of Southeast Asian Nations (Asean) estimated growth ranged from 1% to 4%.
The full-year GDP growth of 5.6 percent in 2021 surpasses the Development Budget Coordination Committee’s target of 5.0 to 5.5 percent.
“We believe that by 2022, we will have not only recovered to pre-pandemic levels, but will also have achieved upper-middle income country status. Throughout the Duterte administration, we have implemented a number of game-changing changes, and we will not slow down in the coming months. “We will continue to undertake structural changes that will strengthen our growth prospects and make the country more robust to future crises,” he said.
He credited Congress with adopting the Retail Trade Liberalization Act and the Foreign Investments Act revisions.
Chua emphasized the importance of completing the economic liberalization reforms by completing the bicameral conference approval and passage of the Amendments to the Public Service Act before Congress adjourns in February.
“This significant legislation will allow foreign investment in important areas such as telecommunications and transportation, as long as the essential protections are in place. This would result in more meaningful job opportunities, increased innovation, reduced pricing, and higher quality goods and services for all Filipinos,” he added.
Despite the impact of Typhoon Odette, which lowered full-year growth by an estimated 0.05 percentage point, Chua, chief of the National Economic and Development Authority (NEDA), claimed the 7.7% GDP was accomplished in the last three months of last year.
“Right now, we’re working on the Post-Disaster Needs Assessment and several regional recovery plans, which we expect to finish by the end of the month so that we can speed up the recovery of these afflicted areas,” he said.
Economic managers are hopeful of surpassing pre-pandemic levels this year, according to Chua, citing last year’s robust economic performance.
“At the end of 2021, we’ll be pretty close to the pre-pandemic level. If you look at nominal levels, they are nearly identical; we are only a few hundred billion (pesos) short, so we will surpass it in 2022,” he added.
Meanwhile, Dennis Mapa, the Philippine Statistics Authority’s (PSA) chief and National Statistician, stated the country’s nominal GDP for full-year 2021 was estimated at PHP19.387 trillion, up from PHP19.518 trillion in pre-pandemic 2019.
Despite the fact that the risk of coronavirus disease 2019 (Covid-19) increased at the start of 2022 as a result of the highly transmissible Omicron variant, Chua said the country has experienced fewer severe cases and deaths than the total number of cases due to an accelerated vaccination program and improvements in the healthcare system.
“So, in the next weeks, I believe there will be an opportunity for us to drop the alert level. “As long as we go back to Alert Level 2 or lower by the end of this quarter, we’ll be on target for full-year growth,” he said.
According to the NEDA, moving the National Capital Region (NCR) Plus area from Alert Level 3 to Alert Level 2 is estimated to increase gross value added by PHP3 billion.
“This year, the biggest threat(s) is/are any unknown viral variants. Aside from that, there aren’t any surprises. “Inflation (oil and food) are two other threats that we are aware of and managing,” Chua said.
He added the country’s current policies are addressing the potential inflation risk posed by global food price increases, including greater support for the rice sector through the rice competitiveness development fund.
“As you are aware, all tariffs collected are used to help the rice industry boost productivity, and as you can see from today’s report, the rice sector grew strongly even during this period. “We’re working on a law to boost the productivity of the cattle, poultry, and dairy industries so that producers may improve their production while consumers benefit from cheaper pricing,” he continued.
According to Chua, the industry and services sectors expanded by 8.2 percent and 5.3 percent, respectively, for the whole year 2021, reflecting a substantial return from the previous year’s contractions.
He said the agriculture sector, on the other hand, had a minor drop of 0.3 percent as a result of ongoing issues such as African swine disease and severe typhoons.
Chua said that private consumption increased by 4.2 percent in 2018, a sharp contrast to the -7.9% growth in 2020.
“As a result of the eased quarantine rules and the faster vaccination program, consumer confidence is returning,” he stated.
According to Chua, investments grew by 19 percent in 2019, up from -34.4 percent in 2020, boosted by a 37.4 percent increase in public construction as the government pushed ahead with the implementation of the plan “Build, Build, Build” is a program to improve infrastructure. (PNA)
What is the Philippines’ current GDP and GNP in 2021?
- In December 2021, the Philippines’ Gross National Product (GNP) was estimated to be 117.397 USD billion.
- This is an increase from the previous figure of 95.239 USD billion in September 2021.
- Philippines Gross National Product (GNP) data is updated quarterly, with 164 observations from Mar 1981 to Dec 2021, averaging 23.953 USD bn.
- The data ranged from a peak of 117.397 USD billion in December 2021 to a low of 6.715 USD billion in September 1985.
- CEIC Statistics reports Philippines Gross National Product (GNP) data, which is still operational in CEIC.
- The CEIC converts quarterly GNP into US dollars. In local currency, the Philippine Statistics Authority offers Gross National Product. For currency conversions, the Bangko Sentral ng Pilipinas uses the average market exchange rate. Prior to Q1 2000, the Gross National Product was calculated using outdated data classification.
What will the Philippines’ GDP be in 2022?
According to our econometric models, the Philippines GDP is expected to trend at 379.00 USD Billion in 2022.
Where does the Philippines stand in terms of GDP?
According to the International Monetary Fund, the Philippines’ economy is the world’s 32nd largest by nominal GDP in 2021, the 12th largest in Asia, and the third largest in ASEAN after Indonesia and Thailand. The Philippines is one of the world’s fastest-growing emerging markets, and it is Southeast Asia’s third-largest economy by nominal GDP, after Thailand and Indonesia.
The Philippines is mainly thought of as a recently industrialized country with an economy that is transitioning from agriculture to services and manufacturing. GDP by purchasing power parity was predicted to be $1.47 trillion in 2021, ranking it 18th in the world.
Semiconductors and electronic items, transportation equipment, textiles, copper products, petroleum products, coconut oil, and fruits are among the country’s main exports. Japan, China, the United States, Singapore, South Korea, the Netherlands, Hong Kong, Germany, Taiwan, and Thailand are among its key commercial partners. The Philippines, along with Indonesia, Malaysia, Vietnam, and Thailand, has been designated as one of the Tiger Cub Economies. Its economy is currently one of Asia’s fastest growing. However, important issues persist, most notably the enormous income and growth gaps across the country’s many regions and socioeconomic levels, as well as the need to reduce corruption and invest in the infrastructure required for future growth.
By 2050, the Philippines’ economy is expected to be the fourth largest in Asia and the 19th largest in the world. The Philippines’ economy is expected to grow to be the 25th largest in the world by 2035.
Who publishes GDP?
Today, the National Statistical Office (NSO) will announce GDP data for the current fiscal year’s July-September quarter. The Reserve Bank of India’s Monetary Policy Committee forecasted 7.9% GDP growth for this period during its October meeting. According to a Bloomberg projection by 14 economists, the number will be 8.1 percent. Aside from the headline figure, how should today’s GDP figures be interpreted? This question is answered by five graphs.
In 2020-21, India’s GDP decreased by a historic 7.3 percent. This was partly due to the 68-day nationwide lockdown that began on March 25, 2020, which resulted in a huge contraction in the first half of 2020-21 (April-September). In the quarters ending June 2020 and September 2020, India’s GDP shrank by 24.4 percent and 7.4 percent, respectively.
GDP growth of 0.5 percent and 1.6 percent in the quarters ending December 2020 and March 2021, respectively, returned the economy to normal. While GDP growth was 20.1 percent in the June quarter, it was lower in absolute terms than in the pre-pandemic quarter of June 2019.
The second wave of Covid-19, which peaked on May 9 in terms of seven-day average daily new cases, played a crucial role in derailing economic momentum once more in the June quarter. If the central bank’s forecast of 7.9% for the September quarter holds true, GDP for the quarter (
What is the size of the Philippines’ debt?
THE PHILIPPINES MANILA, Philippines In January, the Philippines’ total outstanding debt surpassed P12 trillion for the first time, as pandemic-related costs continued to grow despite dwindling government revenue.
On Friday, March 4, the Bureau of the Treasury announced that the total debt had climbed by P301 billion, or 2.6 percent, since the end of December. Debt has increased by 16.5 percent since January 2021.
External borrowing accounted for 30.4 percent of total debt, while domestic borrowing accounted for 69.6 percent.
Domestic debt increased by 2.4 percent, or P197.38 billion, from end-December to P8.37 trillion. This was mostly due to the government’s P300-billion interim advances from the Bangko Sentral ng Pilipinas.
External debt increased by P103.7 billion, or 2.9 percent, to P3.66 trillion at the end of December. The increase in external debt was caused by the weakening of the Philippine peso against the dollar and the net availment of external liabilities.
This is the Philippines’ greatest debt pile to date, limiting borrowing options for the future president.
Is a higher or lower GDP preferable?
Gross domestic product (GDP) has traditionally been used by economists to gauge economic success. If GDP is increasing, the economy is doing well and the country is progressing. On the other side, if GDP declines, the economy may be in jeopardy, and the country may be losing ground.
What accounts for Japan’s high GDP?
Japan has one of the world’s largest and most sophisticated economies. It boasts a highly educated and hardworking workforce, as well as a huge and affluent population, making it one of the world’s largest consumer marketplaces. From 1968 to 2010, Japan’s economy was the world’s second largest (after the United States), until China overtook it. Its GDP was expected to be USD 4.7 trillion in 2016, and its population of 126.9 million has a high quality of life, with a per capita GDP of slightly under USD 40,000 in 2015.
Japan was one of the first Asian countries to ascend the value chain from inexpensive textiles to advanced manufacturing and services, which now account for the bulk of Japan’s GDP and employment, thanks to its extraordinary economic recovery from the ashes of World War II. Agriculture and other primary industries account for under 1% of GDP.
Japan had one of the world’s strongest economic growth rates from the 1960s to the 1980s. This expansion was fueled by:
- Access to cutting-edge technologies and major research and development funding
- A vast domestic market of discriminating consumers has given Japanese companies a competitive advantage in terms of scale.
Manufacturing has been the most notable and well-known aspect of Japan’s economic development. Japan is now a global leader in the production of electrical and electronic goods, automobiles, ships, machine tools, optical and precision equipment, machinery, and chemicals. However, in recent years, Japan has given some manufacturing economic advantage to China, the Republic of Korea, and other manufacturing economies. To some extent, Japanese companies have offset this tendency by shifting manufacturing production to low-cost countries. Japan’s services industry, which includes financial services, now accounts for over 75% of the country’s GDP. The Tokyo Stock Exchange is one of the most important financial centers in the world.
With exports accounting for roughly 16% of GDP, international trade plays a key role in the Japanese economy. Vehicles, machinery, and manufactured items are among the most important exports. The United States (20.2%), China (17.5%), and the Republic of Korea (17.5%) were Japan’s top export destinations in 2015-16. (7 per cent). Export growth is sluggish, despite a cheaper yen as a result of stimulus measures.
Japan’s natural resources are limited, and its agriculture sector is strictly regulated. Mineral fuels, machinery, and food are among Japan’s most important imports. China (25.6%), the United States (10.9%), and Australia (10.9%) were the top three suppliers of these items in 2015. (5.6 per cent). Recent trade and foreign investment developments in Japan have shown a significantly stronger involvement with China, which in 2008 surpassed the United States as Japan’s largest trading partner.
Recent economic changes and trade liberalization, aiming at making the economy more open and flexible, will be critical in assisting Japan in dealing with its problems. Prime Minister Abe has pursued a reformist program, called ‘Abenomics,’ since his election victory in December 2012, adopting fiscal and monetary expansion as well as parts of structural reform that could liberalize the Japanese economy.
Japan’s population is rapidly aging, reducing the size of the workforce and tax revenues while increasing demands on health and social spending. Reforming the labor market to increase participation is one of the strategies being attempted to combat this trend. Prime Minister Shinzo Abe’s ‘Three Arrows’ economic revitalisation strategy of monetary easing, ‘flexible’ fiscal policy, and structural reform propelled Japan’s growth to new heights in 2013.
Do you want to know more? Download the Japan Country Starter Pack or look through our other Indonesia information categories.
Which country is the most powerful in the world?
In the 2021 Best Countries Report, Canada wins the top overall rank as the world’s number one country for the first time. After coming in second place in the 2020 report, Canada has now eclipsed Switzerland in the 2021 report, with Japan, Germany, Switzerland, and Australia following closely behind.