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 current Gross Domestic Product (GDP)?
Retail and wholesale trade industries led the increase in private inventory investment. The largest contributor to retail was inventory investment by automobile dealers. Increases in both products and services contributed to the increase in exports. Consumer products, industrial supplies and materials, and foods, feeds, and beverages were the biggest contributions to the growth in goods exports. Travel was the driving force behind the increase in service exports. The rise in PCE was mostly due to an increase in services, with health care, recreation, and transportation accounting for the majority of the increase. The increase in nonresidential fixed investment was mostly due to a rise in intellectual property items, which was partially offset by a drop in structures.
The reduction in federal spending was mostly due to lower defense spending on intermediate goods and services. State and local government spending fell as a result of lower consumption (driven by state and local government employee remuneration, particularly education) and gross investment (led by new educational structures). The rise in imports was mostly due to a rise in goods (led by non-food and non-automotive consumer goods, as well as capital goods).
After gaining 2.3 percent in the third quarter, real GDP increased by 6.9% in the fourth quarter. The fourth-quarter increase in real GDP was primarily due to an increase in exports, as well as increases in private inventory investment and PCE, as well as smaller decreases in residential fixed investment and federal government spending, which were partially offset by a decrease in state and local government spending. Imports have increased.
In the fourth quarter, current dollar GDP climbed 14.3% on an annual basis, or $790.1 billion, to $23.99 trillion. GDP climbed by 8.4%, or $461.3 billion, in the third quarter (table 1 and table 3).
In the fourth quarter, the price index for gross domestic purchases climbed 6.9%, compared to 5.6 percent in the third quarter (table 4). The PCE price index climbed by 6.5 percent, compared to a 5.3 percent gain in the previous quarter. The PCE price index grew 4.9 percent excluding food and energy expenses, compared to 4.6 percent overall.
Personal Income
In the fourth quarter, current-dollar personal income climbed by $106.3 billion, compared to $127.9 billion in the third quarter. Increases in compensation (driven by private earnings and salaries), personal income receipts on assets, and rental income partially offset a decline in personal current transfer receipts (particularly, government social assistance) (table 8). Following the end of pandemic-related unemployment programs, the fall in government social benefits was more than offset by a decrease in unemployment insurance.
In the fourth quarter, disposable personal income grew $14.1 billion, or 0.3 percent, compared to $36.7 billion, or 0.8 percent, in the third quarter. Real disposable personal income fell 5.8%, compared to a 4.3 percent drop in the previous quarter.
In the fourth quarter, personal savings totaled $1.34 trillion, compared to $1.72 trillion in the third quarter. In the fourth quarter, the personal saving rate (savings as a percentage of disposable personal income) was 7.4 percent, down from 9.5 percent in the third quarter.
GDP for 2021
In 2021, real GDP climbed 5.7 percent (from the 2020 annual level to the 2021 annual level), compared to a 3.4 percent fall in 2020. (table 1). In 2021, all major subcomponents of real GDP increased, led by PCE, nonresidential fixed investment, exports, residential fixed investment, and private inventory investment. Imports have risen (table 2).
PCE increased as both products and services increased in value. “Other” nondurable items (including games and toys as well as medications), apparel and footwear, and recreational goods and automobiles were the major contributors within goods. Food services and accommodations, as well as health care, were the most significant contributors to services. Increases in equipment (dominated by information processing equipment) and intellectual property items (driven by software as well as research and development) partially offset a reduction in structures in nonresidential fixed investment (widespread across most categories). The rise in exports was due to an increase in products (mostly non-automotive capital goods), which was somewhat offset by a drop in services (led by travel as well as royalties and license fees). The increase in residential fixed investment was primarily due to the development of new single-family homes. An increase in wholesale commerce led to an increase in private inventory investment (mainly in durable goods industries).
In 2021, current-dollar GDP expanded by 10.0 percent, or $2.10 trillion, to $22.99 trillion, compared to 2.2 percent, or $478.9 billion, in 2020. (tables 1 and 3).
In 2021, the price index for gross domestic purchases climbed by 3.9 percent, compared to 1.2 percent in 2020. (table 4). Similarly, the PCE price index grew 3.9 percent, compared to 1.2 percent in the previous quarter. The PCE price index climbed 3.3 percent excluding food and energy expenses, compared to 1.4 percent overall.
Real GDP rose 5.5 percent from the fourth quarter of 2020 to the fourth quarter of 2021 (table 6), compared to a 2.3 percent fall from the fourth quarter of 2019 to the fourth quarter of 2020.
From the fourth quarter of 2020 to the fourth quarter of 2021, the price index for gross domestic purchases grew 5.5 percent, compared to 1.4 percent from the fourth quarter of 2019 to the fourth quarter of 2020. The PCE price index climbed by 5.5 percent, compared to 1.2 percent for the year. The PCE price index increased 4.6 percent excluding food and energy, compared to 1.4 percent overall.
Source Data for the Advance Estimate
A Technical Note that is issued with the news release on BEA’s website contains information on the source data and major assumptions utilized in the advance estimate. Each version comes with a thorough “Key Source Data and Assumptions” file. Refer to the “Additional Details” section below for information on GDP updates.
What is the current GDP for the year 2021?
In addition to updated fourth-quarter projections, today’s announcement includes revised third-quarter 2021 wages and salaries, personal taxes, and government social insurance contributions, all based on new data from the Bureau of Labor Statistics Quarterly Census of Employment and Wages program. Wages and wages climbed by $306.8 billion in the third quarter, up $27.7 billion from the previous estimate. With the addition of this new statistics, real gross domestic income is now anticipated to have climbed 6.4 percent in the third quarter, a 0.6 percentage point gain over the prior estimate.
In 2021, real GDP climbed by 5.7 percent, unchanged from the previous estimate (from the 2020 annual level to the 2021 annual level), compared to a 3.4 percent fall in 2020. (table 1). In 2021, all major components of real GDP increased, led by PCE, nonresidential fixed investment, exports, residential fixed investment, and private inventory investment. Imports have risen (table 2).
In 2021, current-dollar GDP climbed by 10.1 percent (revised), or $2.10 trillion, to $23.00 trillion, compared to 2.2 percent, or $478.9 billion, in 2020. (tables 1 and 3).
In 2021, the price index for gross domestic purchases climbed 3.9 percent, which was unchanged from the previous forecast, compared to 1.2 percent in 2020. (table 4). Similarly, the PCE price index grew 3.9 percent, which was unchanged from the previous estimate, compared to a 1.2 percent gain. With food and energy prices excluded, the PCE price index grew 3.3 percent, unchanged from the previous estimate, compared to 1.4 percent.
Real GDP grew 5.6 (revised) percent from the fourth quarter of 2020 to the fourth quarter of 2021 (table 6), compared to a fall of 2.3 percent from the fourth quarter of 2019 to the fourth quarter of 2020.
From the fourth quarter of 2020 to the fourth quarter of 2021, the price index for gross domestic purchases climbed 5.6 percent (revised), compared to 1.4 percent from the fourth quarter of 2019 to the fourth quarter of 2020. The PCE price index grew 5.5 percent, unchanged from the previous estimate, versus a 1.2 percent increase. The PCE price index grew 4.6 percent excluding food and energy, which was unchanged from the previous estimate, compared to 1.4 percent.
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 exactly is the GDP economy?
GDP quantifies the monetary worth of final goods and services produced in a country over a specific period of time, i.e. those that are purchased by the end user (say a quarter or a year). It is a metric that measures all of the output produced within a country’s borders.
In 2021, which country will have the greatest GDP?
What are the world’s largest economies? According to the International Monetary Fund, the following countries have the greatest nominal GDP in the world:
Is the economy doing well right now?
Indeed, the year is starting with little signs of progress, as the late-year spread of omicron, along with the fading tailwind of fiscal stimulus, has experts across Wall Street lowering their GDP projections.
When you add in a Federal Reserve that has shifted from its most accommodative policy in history to hawkish inflation-fighters, the picture changes dramatically. The Atlanta Fed’s GDPNow indicator currently shows a 0.1 percent increase in first-quarter GDP.
“The economy is slowing and downshifting,” said Joseph LaVorgna, Natixis’ head economist for the Americas and former chief economist for President Donald Trump’s National Economic Council. “It isn’t a recession now, but it will be if the Fed becomes overly aggressive.”
GDP climbed by 6.9% in the fourth quarter of 2021, capping a year in which the total value of all goods and services produced in the United States increased by 5.7 percent on an annualized basis. That followed a 3.4 percent drop in 2020, the steepest but shortest recession in US history, caused by a pandemic.
In 2022, what was the GDP?
According to our econometric models, the US GDP will trend around 22790.00 USD Billion in 2022 and 23420.00 USD Billion in 2023 in the long run.
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.
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