Due to the coronavirus pandemic, the Philippine economy has faced a long-time slump and recession, but the World Bank sees the economy recovering in 2021.
The Philippine economy, which faced a huge slump brought by a massive recession caused by the coronavirus disease 2019 (COVID-19) pandemic, is seen to recover by 2021.
The World Bank said on Tuesday that the Philippines is seen to register economic growth of 5.9% in 2021, and 6% in 2022.
According to World Bank senior economist Rong Qian, their forecast came from the expectations that private consumption will help pick up.
Assuming that the government will slowly allow more industries to open and resume operations, it will revive jobs, thus the result of their study showed growth.
The multifaceted lender also stated that it’s seeing ‘continuing improvements’ in lowering the COVID-19 transmission in the Philippines.
Qien said that the country needs to ‘sustain focus on the structural reform agenda’ whilst responding to the pandemic.
“Speeding up reforms that improve the business environment, foster competition, and strengthen resilience against natural disasters will support the economic recovery and boost productivity growth in the long term,” Qien said on their latest Philippines Economic Update or PEU.
Moreover, the World Bank’s PEU also discussed China’s early recovery from the pandemic and is expected to rebound in the global economy in 2021, as well.
The World Bank also reports that the economy is expected to shrink even more to 8.1% for 2020.
The bank’s forecast also saw a -6.9%, which did not include yet the typhoons that battered several parts of Luzon.
It is also believed that 2.7 million more Filipinos will delve into poverty in the next two years, based on the poverty line base of World Bank on a $3.2 or roughly PhP 150 daily per capita income for middle-income countries.
Furthermore, the bank’s economists said that the COVID-19 pandemic, lockdowns, and impacts of typhoons contributed hugely in causing unemployment among Filipinos.
The World Bank recommends the government to conduct more cash transfer programs for the poor.
According to Qian, this will help poor families sustain a daily living and other necessities, especially in the time of crisis.