Juwai IQI global chief economist Shan Saeed (Photo courtesy of Juwai IQI)
MANILA – Kuala Lumpur-based Juwai IQI global chief economist Shan Saeed forecasts the gross domestic product (GDP) growth for the Philippines to bounce back between 5.5 percent and 6 percent this year.
Saeed told the Philippine News Agency in an e-mail Wednesday that local demand and investments in the country will recover this year from the impacts of the coronavirus disease 2019 (Covid-19) pandemic last year.
“Philippine economy is set to bounce back strongly as policy levers are making (a) sound impact. Obviously, this heralds good news for the local investors and consumers in general,” he said.
Saeed said the country will come back into global investors’ radar focus this year.
“In my opinion, the government is trying to bring back macroeconomic stability to drive economic confidence in the landscape. Curbing Covid-19 efforts are proving good results. Right now, many economies and markets are interplaying between epidemiology and economics. Whoever takes lead in controlling the virus, gets more investment in the country,” he added.
With inflation increasing in the latter part of 2020, Saeed believes that policy makers have sufficient room to maneuver fiscal and monetary policy levers.
“With structural levers shaping up well, infrastructure investment is picking up, consumer demand remains intact, inflation-driven GDP growth is good for the economy. Inflation is better than deflation as momentum picks up due to aggregate demand since growth trajectory gets into the limelight,” he said.
He added the GDP forecast for the Philippines this year also considers optimism once Covid-19 vaccination program is rolled out in the country. (PNA)
