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Philippine economy seen to contract by more than 6 per cent in 2020

A resident rides her bicycle past armed soldiers along a street in Navotas in suburban Manila on July 16 after the local government reimposed a lockdown in the city due to increased COVID-19 infections. Photo: CNN. Sketched by the Pan Pacific Agency.

MANILA, Sep 29, 2020, The Manila Times. The World Bank on Tuesday downgraded its 2020 Philippine economic growth forecast to -6.9 percent from -1.9 percent which it said would slow down the country’s progress in poverty reduction over the past years, The Manila Times reported.

In its “From Containment to Recovery – the World Bank’s October 2020 Economic Update for East Asia and the Pacific” report, the World Bank said the economy is projected to recover and grow by 5.3 percent in 2021 and 5.6 percent in 2022.

“Economic growth averaged 6.6 percent from 2015 to 2019, resulting from prudent macro-fiscal management, significant investments in infrastructure and human capital, and favorable external conditions. Consequently, robust growth in household incomes reduced the national poverty rate from 23.5 percent in 2015 to 16.7 percent in 2018,” said the World Bank.

“The Covid-19 shock is now abruptly pushing the economy into recession and threatening these economic and social gains. The pandemic has triggered declines in remittances sent by Filipino overseas workers and job losses caused by strict containment measures,” it added.

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