PH economy ‘unlikely’ to recover in 2021, ‘perhaps in Q2 2022’ – former chief economist

PH economy ‘unlikely’ to recover in 2021, ‘perhaps in Q2 2022’ – former chief economist

Former Socioeconomic Planning Secretary Ernesto M. Pernia said the country’s economy is unlikely to return to its pre-coronavirus level in 2021, contrary to the national government’s expectations.

Pernia noted that this is due to the chronic underspending on health and the Duterte administration’s anemic fiscal response to the coronavirus-induced crisis.

Further, Pernia stated that the recession will be worse than expected this year, and that the Gross Domestic Product (GDP) target of minus 4.5 per cent to minus 6.6 per cent in 2020 is “unlikely to be achieved now.”

Pernia projects that the country’s economy will begin to recover to its pre-coronavirus level “in the second half of 2022.”

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