Remittances, improved external demand to buoy PH recovery

Growth of money being sent home by overseas Filipino workers and improvement of external demand are expected to boost the domestic economy’s recovery this year.

However, Fitch Solutions Country Risks and Industry Research reduced its growth projection for the country this year from 7.6 percent to 5.8 percent on the expected hit from the enhanced community quarantine.

Fitch Solutions said another unfavorable factor in the economy’s recovery is the slow vaccination rollout.

In a report, the unit of Fitch Group cited signs of gradual economic activity such as the above 50 level of the Manufacturing Purchasing Managers’ Index, which was unchanged at 52.5 last February against the previous month “indicating a gradual improvement in activity.”

As of March, the PMI index stood at 52.2 based on the report of the IHS Markit. An index of above 50 indicates expansion while a figure of below 50 shows otherwise.

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