Twin shocks dampened the economic recovery, with GDP growing by a modest 1.8% growth in 2021. A sharp rise in COVID-19 cases in March—followed by severe flooding due to Cyclone Seroja in April—lowered consumer confidence and household income, resulting in lower private consumption. However, government consumption increased in 2021, as it added typhoon support to its COVID-19 recovery measures. Growth will likely to continue into 2023, with strong budget support in 2022 and potential election expenditures in 2023. GDP is forecasts to grow by 2.5% in 2022 and by 3.1% in 2023.
|Headline Inflation Rate 1||0.3 (May20)||0.3||0.8|
|Merchandise Export Growth 1||-29.6 (May23)||-29.6||-54.0|
|Exchange Rate Index 2||100.0 (Aug23)||100.0||100.0|
|1 y-o-y, %.|
2 Monthly average, January 2006 = 100, $/local currency.
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