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