Among others, we expect our economy to continue to expand at a reasonable pace, led by services, industry, and agriculture sectors. Nevertheless, since oil prices continue to be a concern, GDP growth rate, according to the DBCC, may range between 5.7% and 6.3%. Inflation is seen to rise slightly early this year, as a result of high oil prices and the vat rate adjustment.
Manufacturing conditions have likewise improved. The S&P Global Philippines Manufacturing Purchasing Managers’ Index reached 54.1 in May this year, highest in over four years. Consumer confidence is on an uptrend. Consumer sentiment is less pessimistic in Q1 2022 and more optimistic for the next 12 months at 30.4 percent.