Asia Regional Integration Center

Growth rebounded to an estimated 3.0% in 2021 after contracting by 3.1% in 2020. In the second half, a robust recovery in external demand for manufactured products drove the recovery faster than expected. Industrial output grew by 7.4% in 2021 as exports of garments, footwear, and travel goods recovered quickly and non-garment manufacturing continued its robust expansion, with exports rising by 30.7%. Agriculture exports rose by 19.0% in 2021 on solid growth in cassava, banana, and rubber. However, services contracted by 0.4% due to the continuing pandemic and lockdowns. Nevertheless, the recovery in major trading partners will continue to support merchandise exports and inflows of foreign direct investment. The economy is forecast to grow by 5.3% in 2022 and 6.5% in 2023.