Foreign
THE World Bank has slashed its growth forecast for the Philippine economy this year and the next two years, citing lingering effects of the Coronavirus pandemic.
The bank said on Tuesday that the Philippines’ gross domestic product (GDP) was projected to expand 4.7 percent in 2021, down from the initial estimate of 5.5 percent in April.
By 2022, the domestic economy is expected to grow 5.9 percent, down from the earlier projection of 6.3 percent, its report added.
In 2023, the Philippines’ GDP was forecast to expand six percent, lower than the previous forecast of 6.2 percent.
The forecasts were revised “due to the larger than expected economic contraction in the first quarter, the reimposition of stricter quarantine measures in April and May in response to a surge in COVID-19 infections, and the lingering challenges from high inflation and losses in household incomes,’’ the bank said in a statement.
The Philippines’ GDP shrank 4.2 percent in the first three months of 2021, the fifth straight quarter of contraction.
In 2020, the Philippine economy contracted 9.5 percent due to the impact of COVID-19 lockdowns.
Kevin Chua, a World Bank senior economist, called for the effective delivery of social protection programs to help reduce the effect of the crisis on poor and vulnerable families.
“COVID-19 pandemic-related shocks, including hunger incidences, have already manifested in higher levels of child malnutrition, especially among the poor,’’ he said.
The Philippines’ total COVID-19 caseload stands at 1,280,773, with 22,064 deaths. (dpa/NAN)
– June 08, 2021 @ 13:13 GMT
Tags: World Bank cuts Philippine growth forecasts due to COVID-19 impact
