CALOOCAN CITY, (PIA) – The Philippine economy grew by 5.6 percent in 2021 exceeding the government’s revised growth target of 5.0 to 5.5 percent for last year.

“Our strategies in 2021 have culminated in a full-year growth that exceeded targets and expectations,” NEDA Secretary Karl Kendrick Chua said in a press briefing on Thursday, Jan. 27.

The country’s GDP for the last quarter of 2021 grew by 7.7 percent year-on-year growth which is seen faster than expected. This shows a rapid recovery despite the COVID-19 pandemic restrictions and the impact of Typhoon Odette.

The main contributors to the fourth quarter and annual growth were manufacturing, wholesale and retail trade, repair of motor vehicles and motorcycles, and construction.

“This sustained 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.

Chua added that moving our policies from a pandemic to endemic paradigm have led to broad-based expansions across almost all sectors.

The industry sector grew by 8.2 percent while the services sector rose to 5.3 percent showing a strong recovery from the contractions in 2020.

On the other hand, the agriculture sector has shown slight decline of 0.3 percent due to challenges faced such as African Swine Fever and super typhoon.

In terms of expenditure, private consumption grew by 4.2 percent indicating consumer confidence while government expenditure expanded by 7 percent.

“The strong 2021 performance shows us that we are on the correct path to a resilient recovery. The stage is now set for growth to accelerate in 2022,” Chua said.

Despite the increase in COVID-19 cases in the beginning of 2022, severe cases and deaths were limited due to the country’s ramped up vaccination program.

By expanding vaccination to all age group, NEDA sees that this will enable “a safe and full reopening of the economy” which will allow more Filipinos to work, earn a living, and even have face-to-face classes.

“We are optimistic that we will not only recover to the pre-pandemic level in 2022, but achieve the upper-middle income country status,” Chua stated.

The NEDA chief emphasized that they will continue to pursue structural reforms making our country more resilient against future crises and solidify growth prospects. (JMB/PIA-IDPD)