Cut in Projected 2021 GDP Target of 6-7% Seen

The government has forecast a cut in the projected Gross Domestic Product (GDP) of 6-7 percent in 2021 as coronavirus disease 2019 (COVID-19) cases continue to surge in the country, prompting the national government to once again implement more strict quarantine protocols once again.

According to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno during the Laging Handa public briefing on PTV 4 Monday, the cut in the GDP is seen due to the weeks wherein the Enhanced Community Quarantine (ECQ) was implemented in the “National Capital Region (NCR) Plus” bubble, which includes adjacent provinces such as Bulacan, Cavite, Laguna, and Rizal.

However, the central bank chief said that officials see the country’s economy to recover as pre-pandemic economic performance was doing well. He added that the economic performance of the country in 2022 might be on par with that of 2019 so long as the vaccination program is successful.

“Siguro sometime in 2022 makakabalik tayo dun sa where we were before in 2019. At yun naman ay nakabase rin yun kung gaano kabilis natin madi-deploy yung vaccination,” he said.

Diokno added that the International Monetary Fund also recently adjusted their growth outlook for the Philippines from 6.6 percent to 6.9 percent, which was in line with what authorities in the country are targeting for 2021.

Diokno said the International Monetary Fund (IMF), based on the April 2021 World Economic Outlook (WEO) update, revised upwards its growth projection for the domestic economy for this year from 6.6 percent to 6.9 percent. (GFB)