It may take until the fourth quarter of 2023 for the Philippines to recover the pandemic-induced economic loss, according to the Financial Stability Coordination Council (FSCC).
Despite the 5.6% GDP growth last year, the FSCC said that there are remaining costs brought on by the pandemic and “recouping these (at the aggregate) will depend on future gross domestic product (GDP) growth rates.”
They further explained that the Q4 2023 recovery target could only be achieved if there is a 7% GDP increase by year-end.
Additionally, the FSCC identified several issues that need to be addressed to sustain the economic recovery — namely public infrastructure, supply bottlenecks, social inequity, and climate change.
According to their report, the damage from the pandemic was mostly felt by “nonfinancial corporations and vulnerable households” as prices of essential items are increasing at a faster pace.
FSCC emphasized that the COVID-19 has widened the “socioeconomic inequities” in the country and, in turn, will leave lasting effects on the local economy.