PH slashes 2021 economic growth target amid lockdowns

President Duterte’s economic managers have lowered the country’s economic growth targets, taking into account the impact of the mobility restrictions imposed in different parts of the country meant to prevent the spread of COVID19.

By Eileen Mencias, 18 Aug 2021

The Development Budget and Coordination Committee which is composed of the departments of budget and management and finance, and the National Economic and Development Authority cut this year’s growth outlook to 4 to 5% from 6 to 7%.

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“The DBCC will continue to monitor the effects of the Delta variant and the enforcement of community quarantines, and proactively manage the risks to help the economy recover,” the DBCC said.

A slower economic growth set by the DBCC will mean lower revenues for the government, and ultimately, a higher reliance on debt.

Reality bites: Duterte’s economic managers lower 2021 GDP growth target

According to DBM documents, a one-percentage point increase in the GDP means P14.7 billion in additional revenues.

Consequently, a one-percentage point decrease means a P14.7 reduction in revenues.