World Bank significantly cuts Philippines’ 2021 GDP growth forecast – Illinoisnewstoday.com

File photo: In Makati, Metro Manila, Philippines, a man wearing a protective mask is in central business while the government is conducting “enhanced community quarantine” on the country’s main island, Luzon, to contain the coronavirus. Sitting outside the Philippine Stock Exchange in the district. March 17, 2020. REUTERS / Eloisa Lopez Manila- The World Bank

File photo: In Makati, Metro Manila, Philippines, a man wearing a protective mask is in central business while the government is conducting “enhanced community quarantine” on the country’s main island, Luzon, to contain the coronavirus. Sitting outside the Philippine Stock Exchange in the district. March 17, 2020. REUTERS / Eloisa Lopez

Manila- The World Bank has significantly lowered its growth forecast for the Philippines this year with a more severe contraction than expected in the first quarter and the re-imposition of stricter quarantine measures in the Greater Tokyo area to curb the surge in COVID-19 cases. I did.

World Bank senior economist Kevin Chua said in a media briefing that growth in the Philippines is on a recovery track, but this year’s recovery rate is likely to be lower than previously expected.

The World Bank’s forecast has been lowered from the previous forecast of 5.5% and compared to the Philippine government’s 2021 growth target of 6.0% to 7.0%.

Last year’s economy shrank by 9.6%, a record high.

Chua pointed out a number of “significant downside risks” to the World Bank’s outlook, including recurrence of infection with the new COVID-19 variant and increased mobility restrictions.

Southeast Asian countries are fighting one of the worst coronavirus outbreaks in Asia, with more than 1.27 million cases recorded and nearly 22,000 dead.

A new surge in incidents that began in March prompted the metropolitan area and neighboring states to re-impose stricter movement restrictions, but new incidents peaked and some restrictions were relaxed. It was.

Filipino authorities are funding a steady stream of vaccine delivery in the second half of the year to strengthen immunization momentum to further reopen the economy and allow more people to return to work. I will.

According to government data, the unemployment rate rose to 8.7% in April, equivalent to more than 4 million unemployed from 7.1% in March.

The World Bank has also lowered its growth forecasts for the Philippines next year and 2023 from the 6.3% and 6.2% forecasts announced in March to 5.9% and 6.0%, respectively.

“The main policy challenge is to manage the pandemic, effectively provide social protection and mobilize the sector’s participation in the recovery,” Chua said.