Economic recovery further slows due to lockdown
Lockdown’s impact seen on the country’s growth rates
MANILA – The Bangko Sentral ng Pilipinas said the Development Budget Coordinating Council (DBCC) revised downward the growth assumption for the year from a range of 4.0 to 5.0 percent due to the impact of the latest lockdown to stem the spread of the COVID-19 Delta variant. The DBCC retained the growth assumptions of 7.0 to 9.0 percent for 2022, and 6.0 to 7.0 percent for 2023 and 2024.
In a statement, the BSP said this means the road to full recovery remains bumpy. It said the country’s GDP rose from a period of contraction last year until the first quarter of 2021, a positive full-year estimate for 2021 means the economy remains on the path to recovery. What’s consoling is the fact that the Philippines’ medium to long-term growth prospects remain bright.
“There is basis for cautious optimism, especially with the accelerated vaccination program. Business and consumer confidence has already started to improve, with private investments and consumption driving growth of the economy in the second quarter of this year,’ the statement said.
It added the BSP continues to support the economy as it injected over P2.2 trillion into the financial system from the beginning of the pandemic. The BSP will continue to perform as expected for as long as necessary until there is evidence of full recovery.
“As we vaccinate more Filipinos, business and consumer sentimento will further improve, supporting overall economic growth,” the statement added.
It reiterated its commitment to help bring the Philippine economy back to the pre-pandemic trajectory toward a “New Economy, expected to be stronger, more technology driven and more sustainable, and more inclusive than expected. (Melo M. Acuña)
What used to be a crowded mall now has few customers as the ECQ been enforced from August 6 until the 20th to curb the rising numbers of COVID-19 cases triggered by the Delta variant. (Melo M. Acuna photo)