UOB Group’s Senior Economist Julia Goh and Senior Economist Loke Siew Ting review the latest GDP figures in the Philippines.

Key Takeaways

“The Philippines’ economy got off to a strong start this year, with 1Q22 GDP growth accelerating to a three-quarter high of 8.3% y/y (from an upwardly revised 7.8% in 4Q21 vs 7.7% previously). The reading came in well above our estimate (+7.6%) and Bloomberg consensus (+6.8%). It was propelled by a persistent expansion across all sectors, the strongest household consumption growth on record, robust investment and continued stock replenishment activities regardless of the Omicron wave hit during the quarter.”

“Despite rising external challenges, we believe that the Philippines’ economic recovery prospects remain intact through 2022. Positive growth catalysts include the country's border reopening to foreign visitors since Feb, the ongoing targeted government policy support, the world’s transition to endemicity, and the likelihood of broader policy continuity after Monday's (9 May) presidential elections. We reiterate our 2022 full-year GDP growth forecast at 6.5% (official est: 7.0%-9.0%).”