The economy expanded by 5.6 percent in 2021, a rebound from the pandemic- and lockdown-induced 9.6 percent contraction in the previous year, the Philippine Statistics Authority reported yesterday.
The economy’s growth last year was slightly above the government’s revised growth assumption of 5 to 5.5 percent for 2021.
The expansion in the full year was bolstered by the 7.7- percent growth in the fourth quarter, which is a reversal of the 8.3 percent contraction in the same period in 2020.
Karl Kendrick Chua, socioeconomic planning secretary, said in a virtual briefing yesterday the growth in the fourth quarter was much faster than most analyst forecasts, making the country’s expansion among the highest in the region.
“This sustained (2021) growth was driven by the successful management of risks such as targeting the areas with highest risk and allowing the rest of the economy to open,” Chua said.
“Our policies to move from a pandemic to a more endemic paradigm have led to broad-based expansions across almost all sectors, despite challenges brought about by the continued persistence of COVID-19 (coronavirus disease 2019), various levels of quarantines, and prevalence of natural disasters,” he added.
The industry and services sectors in 2021 grew by 8.2 percent and 5.3 percent, respectively, a strong rebound from the contractions experienced by these sectors in 2020.
The agriculture sector, however, registered a slight decline of 0.3 percent brought about by the African swine fever and super typhoons,.
On the expenditure side, private consumption grew 4.2 percent, a stark reversal from 2020’s -7.9 percent.
“This indicates returning consumer confidence as a result of relaxed quarantine restrictions and the accelerated vaccination program,” Chua said.
Government expenditure also expanded by 7 percent.
External trade recovered at a faster pace in 2021. Exports grew by 7.8 percent, compared to -16.3 percent in 2020. The same trend can be seen in imports with a sustained growth of 12.9 percent in 2021, compared to -21.6 percent in 2020.
Investments posted a double-digit growth of 19 percent rebounding from -34.4 percent in 2020.
“This was supported by a 37.4 percent growth in public construction as the government proceeded full-steam ahead with the implementation of the Build, Build, Build infrastructure program,” Chua said.
Chua said based on initial estimates, the impact of typhoon Odette to the full-year gross domestic product (GDP) growth is 0.05 percentage points.
“We are now in the stage where we are preparing the post-disaster need assessment and the various regional recovery programs, which we hope to complete by the end of the month so that we can accelerate the recovery of the affected regions,” he said.
Dennis Mapa, national statistician, said in the same briefing the nominal GDP growth for the year is still down by around P131 billion or 0.7 percent versus the pre-pandemic 2019 figure.
For 2021, Mapa said the nominal GDP is estimated at P19.387 trillion, while the 2020 and 2019 comparative figures are P17.939 billion and P19.518 billion, respectively.
“We are optimistic that we will not only recover to the pre-pandemic level in 2022, but achieve the upper-middle income country status,” he added.
Malacanang called for the passage of proposed amendments to the Public Service Act and the proposed bill on Livestock Development and Competitiveness along with the strict implementation of the Philippine Innovation Act to sustain the country’s economic recovery and continued growth.
Karlo Nograles, Cabinet secretary and acting presidential spokesman, yesterday said the growth posted in fourth quarter and in 2021 are proof of the strength and resilience of the economy amid the challenges brought about by the COVID-19 pandemic and natural calamities like typhoon Odette.
Nograles said to continue building the economy, the country needs laws such as the amendments to the Public Service Act to open key sectors to foreign investments, subject to safeguards, and the proposed Livestock Development and Competitiveness to improve the competitiveness of the livestock, poultry and dairy sectors.
He also noted the need to ensure the implementation and compliance to the Philippine Innovation Act to improve the people’s productivity. With JOCELYN MONTEMAYOR
