PH economic growth forecast hiked by Fitch Solutions

Fitch Solutions has upgraded its 2021 economic growth forecast for the Philippines to 4.5 percent, an increase from its previous projection of 4.2 percent.

Goldman Sachs Economics Research raised its full-year projection to 4.9 percent from 3 percent previously, while Pantheon Macroeconomics upgraded its forecast to 5.5 percent from 4 percent.

These revisions come after the Philippine economy experienced a stronger-than-expected GDP growth of 7.1 percent in the third quarter, surpassing market consensus expectations of 4.9 percent.

Fitch Solutions identifies recovering domestic activity as the primary driver for future economic growth, although it notes low vaccination rates and less favorable external conditions pose downside risks.

However, Pantheon Macroeconomics suggests the strong third-quarter outturn is unsustainable, with the rebuilding of household savings likely to weigh on spending decisions in the coming year.