Philippine economy to grow 6% this year, 6.3% next year

Southeast Asia’s economic growth is expected to be 4.9 percent in 2022

The Asian Development Bank (ADB) released its annual Asian Development Outlook report recently and showed that this year, the Philippine economy is expected to grow 6 percent and 6.3 percent in 2023. 

The 2022 projection falls short of the initial seven to nine percent estimates, but next year’s is well within its six- to seven percent range.

ADB Philippines Country Director Kelly Bird said, “Policies to build the resilience of micro, small and medium-sized enterprises (MSMEs), which play a vital role in the country’s economic recovery, should be strengthened to support the sector’s digital transformation, business innovation, and skills development,” 

Under the Skills Up Net Philippines program, the ADB is currently assisting the government in providing employer-led skills training to selected sectors to upgrade MSME workers’ competencies. 

Easing COVID restrictions for fully vaccinated foreigners will also boost tourism and employment in the services sector.

More: The Philippines aims for a 7–9% growth in GDP in 2022

Additionally, shipbuilding is an emerging growth driver in the Philippine economy.

Tens of thousands of oceangoing vessels have been worked on by Filipinos as a contribution to global commerce. An increasing number of these ships are being built and repaired domestically such as in industrial parks similar to the one in Balamban, Cebu, reported The Manila Times.

The Philippines’ ocean industries accounted for 3.6 percent of the country’s GDP in 2018 with PHP622.2 billion (USD11.9 billion), according to the Philippine Statistics Authority (PSA).

Industrial activities such as shipbuilding, repairs, and upgrades accounted for 34.2 percent of the value of the country’s ocean industries that year.

In 2019, data from the Observatory of Economic Complexity revealed that the Philippines is the world’s fifth-largest provider of ships by tonnage, with the majority of these vessels being exported to markets in Japan, Taiwan, Germany, Liberia, and French Polynesia.

Southeast Asia’s economic growth is expected to be 4.9 percent in 2022 and 5.2 percent in 2023, both higher than last year’s 2.9 percent growth.

The Property Report editors wrote this article. For more information, email: [email protected].