NEDA expects Philippine economy to grow beyond 4-5% target in 2021

The National Economic and Development Authority (NEDA) is optimistic that the country’s economy can grow beyond the government’s target band for the full-year 2021.

“We think, we will meet the target of between 4 and 5%, actually high end of the target. Pero ang inaasahan namin na mas tataas pa sana sa 5%. Nakikita naman natin na patuloy ang recovery natin nitong fourth quarter,” NEDA Undersecretary Rosemarie Edillon said during PTV’s Laging Handa briefing.

(But, we are expecting it to grow higher than 5%. We are seeing continuous recovery this fourth quarter.)

The economy as measured by gross domestic product (GDP)—the total value of goods and services produced in a country in a specific period—grew 7.1% in the third quarter, a reversal from a contraction of 11.4% in the same period last year albeit lower compared to the 12% growth posted in the second quarter of 2021.

Year-to-date, the country’s GDP grew 4.9%, within the upper end of the government’s downwardly revised target band of 4% to 5% for the entire 2021.

The economy needs to grow by 5.3% in the fourth quarter of the year to achieve the upper end of the government’s full-year growth goal, according to the Philippine Statistics Authority.

Banking on the accelerated vaccination rollout and the further easing of restrictions in the last quarter of the year, Edillon said that meeting the 4% to 5% GDP growth target was “for sure.”

“[A]nd pwede pa natin malampasan ‘yang target na ‘yan,” she said.

(We can even surpass that target.)

The NEDA official said that if the economic growth surpassed the government’s goal for 2021, the economy could return to pre-pandemic levels by the first quarter of 2022.

The PSA earlier said that the Philippine economy was still 5.7% short of its pre-pandemic levels in 2019.

In peso terms, the third-quarter GDP was estimated at P13.32 trillion, lower by 5.7% compared to P14.1 trillion in the same period in 2019. — DVM, GMA News