THE ASIAN Development Bank (ADB) has approved a $225,000 grant to the Philippine government to create an economic growth strategy to help reach its target of becoming a high-income country in two decades.

The ADB in a document said the grant was approved on Dec. 28.

“The technical assistance will support the Philippines’ Department of Finance (DoF) formulate a growth strategy that will guide necessary structural reforms to lift potential growth and create skilled jobs,” the ADB said.

“The socioeconomic impacts of the coronavirus disease (COVID-19) pandemic created many development challenges. This strategy will identify new sources of sustained growth that will help the Philippines consistently achieve a real GDP (gross domestic product) growth to become a high-income country in the 2040s.”

Project outputs include an economic complexity analysis and services for the country’s long-term growth strategy.

The ADB noted that the Philippine economy contracted by 9.6% in 2020 due to the pandemic’s impact.

The multilateral lender said the economy started to recover in the second quarter last year, with investment and household consumption as strong contributors.

“Progress in vaccination is helping restore consumer and business confidence. An expansionary fiscal policy continues to support growth, especially infrastructure investment,” the ADB said.

The Philippine government’s AmBisyon Natin 2040 crafted in 2016 is a plan to eliminate poverty and make the country a predominantly middle-class society. — Jenina P. Ibañez

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