WB expects PH economy to shrink by 8.1% in 2020 due to COVID-19’s ‘triple shock’

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By: Manila Bulletin

The World Bank expects the Philippine economy to slip deeper than initially estimated, but the level of contraction will be less severe than the Duterte administration’s projection.

In its latest Philippine Economic Update, the Washington-based financial institution said the COVID-19 pandemic delivered a triple shock to the country that could drag down its local economy by as much as 8.1 percent this year.

The World Bank’s latest economic projection is a revision from its 6.9 percent contraction estimate in October, but better than the government’s new forecast range of -8.5 percent to -9.5 percent.

World Bank lowered its growth forecast on expectations of heavier impacts of the ongoing health crisis, strict containment measures, and unprecedented scale of global recession on the Philippines.

The economy slipped into recession in the first half of 2020 for the first time since 1991.

 

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