No Changes in ’20, ’21 PH GDP Forecasts: S&P Global

No changes will be made in the GDP forecast of S&P Global for the Philippines in 2020 and 2021 as they note the impact of recent natural phenomena such as typhoons has hindered further any chance of economic recovery brought about by the improved workforce mobilization, along with better employment as the government continues to relax quarantine protocols.

S&P Global forecasts a 9.5-percent decline for the Philippine domestic economy for 2020 as the coronavirus disease 2019 continues to wreak havoc in the country. However, a 9.6-percent recovery for 2021 is projected.

The report also cited the economic recovery for the third-quarter as the Philippine government started to ease quarantine protocols, leading to the mobilization of the workforce.

This comes as economic performance for the third-quarter of 2020 experienced less decline of 11.5 percent, compared to the -16.9 percent shrinkage of the economy the previous quarter–a decades-high decline.

While the economy has started to get back on track due to the mobilization of the workforce and the relaxation of quarantine continues, Typhoons Quinta, Rolly, and Ulysses swept through several parts of Luzon in October and early November, once again hampering economic activity in the region.

While the economic activity in typhoon-hit areas slowed down, inflation rate accelerated due to typhoon-induced supply disruption, which is still within the 2 to 4-percent target of the government for 2020-2022. (GFB)