The World Bank has slashed its growth forecast for the Philippine economy this year and the next two years, citing lingering effects of the Coronavirus pandemic.
The bank said on Tuesday that the Philippines’ gross domestic product (GDP) was projected to expand 4.7 per cent in 2021, down from the initial estimate of 5.5 per cent in April.
By 2022, the domestic economy is expected to grow 5.9 per cent, down from the earlier projection of 6.3 per cent, its report added.
In 2023, the Philippines’ GDP was forecast to expand six per cent, lower than the previous forecast of 6.2 per cent.
The forecasts were revised “due to the larger than expected economic contraction in the first quarter, the reimposition of stricter quarantine measures in April and May in response to a surge in COVID-19 infections, and the lingering challenges from high inflation and losses in household incomes,’’ the bank said in a statement.
The Philippines’ GDP shrank 4.2 per cent in the first three months of 2021, the fifth straight quarter of contraction.
In 2020, the Philippine economy contracted 9.5 per cent due to the impact of COVID-19 lockdowns.
Kevin Chua, a World Bank senior economist, called for an effective delivery of social protection programmes to help reduce the effect of the crisis on poor and vulnerable families.
“COVID-19 pandemic-related shocks, including hunger incidences, have already manifested in higher levels of child malnutrition, especially among the poor,’’ he said.
The Philippines’ total COVID-19 caseload stands at 1,280,773, with 22,064 deaths. (dpa/NAN)
