9.4% Economic Growth Seen in PH

With the production of COVID-19 vaccine around the world ongoing and the procurement of the Philippine government for vaccines in the works, experts look forward to great economic growth in the Philippines in the year 2021.

“In 2021, we expect growth to rebound the most in the Philippines (9.4 percent) and Malaysia (6.6 percent), which were among the hardest hit by virus,” according to banking giant Goldman Sachs.

However, Goldman Sachs admitted that despite the economic growth, the country’s Gross Domestic Product (GDP) will still decline by 8.5% in ASEA-5. The decline is primarily due to strict quarantine lockdowns amid the pandemic.

“The government also plans to normalize capex spending under its flagship ‘Build, Build, Build’ infrastructure spending program in 2021. Program expenditures are expected to contract 6 percent this year as the government prioritized social and health-care spending,” Goldman Sachs added.

In ASEAN-5, countries like Singapore and Malaysia are seen to be more successful in economic growth since they were also successful in containing the virus effectively. (MLC)