Illustrative image (Photo: Internet) Hanoi (VNA) – The Philippine economy is projected to contract 1.9 percent this year due to the economic fallout triggered by natural disasters and COVID-19, the World Bank said in an updated report released on June 9.
In this report, the WB said the eruption of Taal Volcano and the global COVID-19 pandemic, including the strict containment measures against the epidemic, have led to severe disruptions in manufacturing, agriculture, tourism, construction, and trade.
The cumulative impact of these events on the economy has been broad-based and deep, halting investment activity and leading to the lowest consumption growth in three decades, according to the report.
The report said growth forecast for 2020 assumes that the containment measures will gradually ease in the second half of the year, and economic activities return in some sectors of the economy. Given income losses and heightened uncertainty, household consumption and private investment are expected to remain weak.
However, it added, economic growth prospects and poverty figures are expected to improve in succeeding years driven by a rebound in consumption, a stronger push in public investment, supportive fiscal and monetary policies, and the recovery of global growth.
The Philippines' economic growth is predicted to return to above 6 percent in 2021 and 7 percent in 2022, the report said, noting that the Philippines' strong fundamentals, built over decades of structural reforms, have helped the economy to cope with the COVID-19 pandemic./.
In this report, the WB said the eruption of Taal Volcano and the global COVID-19 pandemic, including the strict containment measures against the epidemic, have led to severe disruptions in manufacturing, agriculture, tourism, construction, and trade.
The cumulative impact of these events on the economy has been broad-based and deep, halting investment activity and leading to the lowest consumption growth in three decades, according to the report.
The report said growth forecast for 2020 assumes that the containment measures will gradually ease in the second half of the year, and economic activities return in some sectors of the economy. Given income losses and heightened uncertainty, household consumption and private investment are expected to remain weak.
However, it added, economic growth prospects and poverty figures are expected to improve in succeeding years driven by a rebound in consumption, a stronger push in public investment, supportive fiscal and monetary policies, and the recovery of global growth.
The Philippines' economic growth is predicted to return to above 6 percent in 2021 and 7 percent in 2022, the report said, noting that the Philippines' strong fundamentals, built over decades of structural reforms, have helped the economy to cope with the COVID-19 pandemic./.
VNA
