The Philippine economy is expected to post its first annual contraction in more than 20 years this year due to the global coronavirus outbreak.
According to the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, the gross domestic product will likely shrink by 0.2% this year, before bouncing back to about 7.7% in 2021 as policy support measures gain traction.
Major cities in the Philippines have been under strict quarantine measures since mid-March. BSP governor Benjamin Diokno said in a statement that the strong recovery is based on the assumption that the pandemic is contained in the second half of this year.
The Philippines was among the fastest-growing economies in Asia during the pre-pandemic period.