World Bank cuts 2021 growth forecast for PH anew

By Melissa Luz Lopez, CNN Philippines, 8 Jun 2021

Metro Manila (CNN Philippines, June 8) — The Philippine economy will record an even slower economic growth this year following a steep crash in 2020, the World Bank said Tuesday.

From a growth forecast of 5.5% in March, the global lender now sees a 4.7% expansion for 2021.

World Bank economist Kevin Chua said the Philippine economy is expected to recover this year, but this is hinged on the ability to manage the COVID-19 health crisis, effective pandemic containment, mass vaccinations, and further loosening of quarantine restrictions. He added that the path to recovery appears “fragile and challenging.”

The Philippines is among the last countries in the region to start its vaccination drive, only rolling it out on March 1 and with doses slow to come in for the past three months.

The country likewise saw a resurgence in infections, which started in Metro Manila and nearby provinces, collectively known as NCR Plus. It has now reached parts of Visayas and Mindanao.

President Rodrigo Duterte’s economic team also slashed its growth targets this year to 6-7% from 6.5-7.5% after reporting five straight quarters of contraction, with economic output shrinking by 4.2% in the first three months.