The Philippines to become the fastest growing economy in 2022

The Philippines to become the fastest growing economy in 2022

On Tuesday, the Organization for Economic Co-operation and Development released a new report on the economic outlook for Southeast Asia, China and India for 2022. According to him, the economic indicators of the Philippines will grow most actively of all countries in the region. At the same time, the state's GDP will increase by 7%, which is slightly below the target of 9%. 

Growth is due to the rapid implementation of investment projects in the field of infrastructure, the restoration of remittances of Filipino workers from abroad. However, the uncertainties associated with the pandemic continue to tilt the balance of risks to the downside. 

The OECD estimates that Philippine real GDP growth this year has outperformed growth forecasts of 5.2% for Indonesia, 6% for Malaysia, 3.8% for Thailand, and 6.5% for Vietnam. 

Compared to other emerging Asian economies, the Philippines will also grow 5.1% faster than China this year. By 2023, it will grow by 6.1%. 

However, the COVID-19 pandemic has taken a toll on labor markets in developing countries in Asia, particularly in the Philippines and Vietnam. 

Last week, the government acknowledged that while the 6.4% unemployment rate in January 2021 fell to its lowest level since the pandemic, the number of unemployed Filipinos would have been lower were it not for the tighter restrictions imposed during the latest wave of infections.