DBCC Sets Deeper Economic Decline in 2020 – Manila Bulletin

The Interagency Development Budget Coordination Committee (DBCC) expects a deeper economic contraction this year due to community quarantine measures amid the COVID-19 crisis.
Following the DBCC meeting Thursday night, economic managers adjusted their assumption of gross domestic product (GDP) for the year to -8.5 percent to -9.5 percent from a previous range of -4.5 percent to – 6.6 percent established last July.
“The emerging GDP growth rate assumption for 2020 has been adjusted … following the prolonged imposition of community quarantines in various regions of the country,” said Acting Budget Secretary Wendel E. Avisado.
Despite the deeper economic woes, Avisado said the DBCC predicts that the local economy will “recover” in 2021, growing between 6.5% and 7.5%.
By 2022, the DBCC predicted that the economy will expand at a much faster rate of 8.0 percent to 10 percent.
“We have revised the macroeconomic assumptions and targets to take into account the recent positive developments that will help propel the Philippine economy towards a strong recovery beginning in 2021,” Avisado said.
“These developments include our gradual recovery, better-than-expected performance from major revenue collection agencies, improvements in the employment situation compared to the peak of community quarantine restrictions, and the likely passage of key recovery bills. economic, ”he added.
In 2020, the Philippines suffered a sharp economic contraction, the worst result in 35 years.
In the second quarter, the country’s GDP suffered a record drop of 16.9 percent, but registered a smoother contraction in the third quarter of 11.5 percent.
“We also expect a further improvement in our fourth quarter GDP figures. As we carefully and proactively manage risks, a strong economic recovery and solid growth remain within our grasp, ”Avisado said.