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 will the Philippines’ GDP rank be in 2020?
In 2020, the Philippines’ GDP was $361,489 million, placing it 35th out of 196 nations in our ranking of GDP.
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 estimated 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.
How much debt does the Philippines have?
According to the Bureau of the Treasury, the Philippine government’s outstanding debt reached 11.7 trillion pesos ($229 billion) at the end of December, up a fifth from a year ago.
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:
Which country has the highest GDP in 2021?
The United States and China would rank first and second in both methodology’ gdp rankings by 2021. The nominal gap between the US and China is narrowing, since China’s gdp growth rate of 8.02 percent in 2021 is higher than the US’s 5.97 percent. In nominal terms, the United States will be $6 trillion ahead of China in 2021. On a per-person basis, China surpassed the United States in 2017 and is now ahead by $4 trillion, with the gap widening. On a per capita basis, China will continue to be the world’s greatest economy for the next few decades, since the US, which is rated second, grows slowly and India, which is placed third, lags far behind.
In terms of nominal GDP, the top ten would remain same. Iran has surpassed the Netherlands, Saudi Arabia has surpassed Turkey, and Switzerland has surpassed Switzerland on the top 20 list. South Africa’s economic ranking would rise eight places in the top 50, while Egypt would drop four places.
There would be no change in the top 10 list in the ppp ranking. Taiwan overtaking Australia is another change in the top 20. Ireland will move up three places in the top 50.
In 2021, all of the economies in the top 50 will grow at a positive rate. With a 14.04 percent growth rate, Ireland is the fastest-growing economy, followed by Chile (11.00 percent ). Thailand has the slowest growth rate, at 0.96 percent, followed by the UAE (2.24 percent) and Japan (2.36 percent ).
In nominal terms, the United States (1,5) appears on both lists of the top 10 GDP and GDP per capita. In terms of GDP and GDP per capita, Germany (4,17), Canada (9,15), Australia (13,9), the Netherlands (18,12), and Switzerland (20,3) are among the top twenty countries. In both rankings, the United States (2,8) is in the top 10, while Germany (5,18) and Taiwan (18,15) are in the top twenty.
What kind of economy does the Philippines have?
Privately owned firms are governed by government policy in the Philippines, which has a mixed economy. It is classified as a newly industrialized economy and developing market, implying that it is transitioning from an agricultural-based economy to one that is more service-oriented and manufacturing-oriented. The economy of this country is the 36th largest in the world and the third largest in the ASEAN region (ASEAN).
According to the IMF, its nominal gross domestic product (GDP) was $356 billion in 2019 and its GDP per capita was $3,280. This country has a workforce of 64.8 million people and a 4.7 percent unemployment rate. According to the Philippines Statistics Authority, 55.9% of these employed people work in the service industry. Agriculture (26%) and industry (26%) come in second and third, respectively (18.1 percent ).
Can the Philippines join the First World?
“I believe that the Philippines, as a democratic country, has the potential to achieve first-world status if the government and the people collaborate on social and economic growth.”
“The Philippines possesses the characteristics necessary to become a first-world country. The Philippines, in my opinion, has a lot to offer. We’re on the right track to economic prosperity; all we need now is a strong leader.”
The Philippines, we feel, has the potential to become a first-world country. Filipinos are hardworking and efficient employees. Consider the millions of experts who are working in other countries because there are no possibilities for growth in the United States. Every Filipino has a responsibility in May to elect a leader who can develop a sound economic policy for us that will lay the foundation for the country’s strong and sustained economic growth.