AMRO cuts PH growth forecast to 4.3%

The ASEAN+3 Macroeconomic Research Office (AMRO) has reduced its 2021 growth forecast for the Philippines to 4.3%, citing lower consumer spending and a resurgence of COVID-19 infections.

This is less optimistic than AMRO's previous estimates, which were 6.9% in March and 7.4% in January.

AMRO also lowered its 2022 growth forecast from 7.8% to 6.7%, still within the government’s target range of 7-9%.

The revised forecasts reflect the impact of prolonged quarantines on small businesses and consumer spending, with AMRO chief economist Hoe Ee Khor emphasizing the need for additional support measures.

Despite the lower growth projections, Khor remains optimistic about a recovery starting this year due to an accelerated vaccination program targeting 80% of the population by Q1 2022.