Philippines dramatically slashes 2021 economic growth target due to blockade

Manila: The Philippines lowered its economic growth targets this year, reflecting the effects of blocking the metropolitan area for two weeks to contain the spread of variants of the delta coronavirus, an intergovernmental panel said Wednesday.

The Development Budget Coordination Committee (DBCC) said in a statement that this year’s growth target has been lowered from the previously expected 6.0% to 7.0% to 4.0% to 5.0%. .

The growth target for next year has been maintained between 7.0% and 9.0%.

The downgrade was still a significant improvement over last year’s record 9.6% reduction. https://www.reuters.com/article/philippines-economy-gdp-idINL4N2M11V5

“Our strategy is to continue to manage risk carefully by imposing a precise quarantine, while allowing a large number of people to make a living,” DBCC said, referring to the lockdowns. ..

“The road to full recovery is still steep,” said central bank governor Benjamin Diokno.

However, the central bank will continue to do what it needs to do until it has strong evidence of a full recovery, Diokuno said in a statement.

Policymakers stabilized benchmark interest rates at a record 2.0% last week https://www.reuters.com/article/philippines-economy-rates/update-2-philippine-c-bank -vows -to-maintain -policy- support-amid-covid-19-surge-idUSL1N2PJ0IC, provides financial support for economic recovery.

Southeast Asia, which was one of Asia’s fastest growing economies before the pandemic, escaped recession in second quarter after fifth consecutive quarter of contraction https: //www.reuters .com / article / philippines-economy-gdp-idUSL1N2PH04H.

However, a further rise in COVID-19 cases caused by Delta variants has forced authorities to impose a two-week blockade in the metropolitan area https://www.reuters.com/world/asia. -pacific / Manila-locks-down -philippines-virus-cases-near-four-month-high-2021-08-06 / #: ~: text = MANILAper cent2Cper cent20Augper cent206per cent20, infectionsper cent20forper cent20almostper cent20fourper cent20months August 6 From of the year which compromises the expected rebound of the economy.

More than a year and a half after the pandemic, reported coronavirus infections in the Philippines topped 1.77 million, the second highest level in Southeast Asia, and deaths topped 30,600.

So far, the Philippines has fully immunized about 11% of the 110 million people against COVID-19, and millions of people remain vulnerable.

(Report by Neil Jerome Morales and Karen Lema, edited by Ed Davies and Martin Petty)