Growth in 2021 was slightly higher than previously estimated.
This developed as two separate surveys show Filipinos are optimistic over the economy in general and their incomes in particular.
The Philippine Statistics Authority (PSA) revised the growth figure to 5.7 percent, a 0.1 percentage point increase from the earlier announced 5.6 percent for last year.
The economy posted a rebound in 2021 from the pandemic- and lockdown-induced 9.6 percent contraction in 2020.
Growth last year was above the government’s revised growth assumption of five to 5.5 percent for 2021.
The PSA said in a statement yesterday the fourth quarter GDP growth was revised upward to 7.8 percent from the preliminary estimate of 7.7 percent.
For this year, the government has a growth assumption of seven to nine percent.
Meanwhile, the first quarter consumer pulse study conducted by information and insights firm TransUnion showed that 75 percent of those surveyed anticipating their household income will increase this year. This bodes well for the Philippine economy, which is projected by the National Economic and Development Authority (NEDA) to grow by up to 9 percent in 2022.
The fourth quarter survey of the Social Weather Stations (SWS) done from December 12 to 16, 2021, on the other hand, showed 51 percent are optimistic the economy will improve in the next 12 months.
TransUnion surveyed 1,078 adults in the Philippines from February 8 to 23, 2022 where 51 percent of respondents said in the last three months they saved more in an emergency fund, 45 percent cut back on expenses for dining out, travel, and entertainment, and 28 percent added to or expanded digital services like wireless and internet.
Over the next three months, consumers expect their spending on the following to increase: medical care/services 44 percent, retail shopping 37 percent, and retirement funds and investing 35 percent.
In the next 12 months, 51 percent of Filipinos expect that they will be able to pay at least one of their current bills and loans in full.
However, the other 49 percent from the past quarter expect that they are unable to pay at least one of their current bills and loans in full, as there’s been no significant change in the ability to meet financial obligations.
SWS’ survey, which involved 1,440 adult respondents said the “economic optimists” or those who expect the economy to improve is nine points up from the 42 percent recorded in November 2020.
The resulting net economic optimism (percentage of economic optimists minus percentage of economic pessimists) of an “excellent” +44 is up from the “high” +24 in November 2020. Angela Celis, Jocelyn Montemayor and Myla Iglesias.
