PH economy expected to shrink by 1.9%
The World Bank (WB) is projecting the Philippine economy to shrink by 1.9% this year due to COVID-19. In its latest Philippine Economic Update, WB slashed its gross domestic product (GDP) output forecast for the country to -1.9% from the 3% baseline projection it gave in April and the 6.1% estimated in January.
Further, WB stressed the need for the Philippines to ramp up the digital transformation deemed crucial under the “new normal,” stating that the the country could be a “significant player in the global digital market” as the number of Filipino internet users continue to rise and its domination in the Information Technology and Business Process Outsourcing (IT-BPO) industry.
“Increasing digital adoption and its contribution to economic growth requires government actions to create a conducive and competitive business environment,” it added.
For next year, WB maintained its 6.2% growth projection it gave in April and estimated a 7.2% growth in 2022 as the economy is expected to make a gradual recovery.
Related news
- Gambling will help economic recovery – PAGCOR · 10 Jun
- IT, BPO industries experiencing a “bloodbath” due to COVID-19 · 8 Jun
- BPO sector expected to fare better this year · 8 Jun
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
