PH 2021 growth forecast slashed to 4%
Economic managers have adjusted the 2021 growth assumption of the Philippines to 4% to 5% from the earlier 6% to 7% forecast due to the possible economic effects of the imposed strict lockdown in the country.
The Development Budget Coordination Committee (DBCC) said that the agency’s earlier growth assumption “would have been achievable” if the enhanced community quarantine (ECQ) in various cities such as Metro Manila was not implemented.
In a statement, the DBCC said that their strategy is “to continue managing the risks carefully by imposing granular quarantines while allowing a vast number of people to earn a living.”
The agency added that they will continue to use the strict quarantine period to help speed up the roll-out of vaccines to more individuals.
The statement also highlighted the government’s “careful balancing of Covid-19 and non-Covid-19 risks” in the first half of the year which resulted in an 11.8% gross domestic product (GDP) growth in Q2, which ended a five-quarter GDP decline.
Meanwhile, the economic managers have kept their GDP 2022 forecast of 7% to 9% and the 2023-2024 target of between 6% to 7%.
