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World Bank downgrades Philippine economic forecast to 4.7 percent for 2021

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/business/04/28/20210128-makati-pedestrian-covid-md-9951.jpg"/><figcaption>Pedestrians cross the intersection of Makati Avenue and Buendia Avenue in Makati City on January 28, 2021. <em>Mark Demayo, ABS-CBN News/File</em></figcaption></figure></div><p>MANILA - <strong>(UPDATED)</strong> The World Bank on Tuesday downgraded its Philippine economic forecast citing the resurgence in COVID-19 cases and reimposition of restrictions that could affect recovery this year. </p><p>The country&#x27;s Gross Domestic Product (GDP) can grow to 4.7 percent from the initial forecast of 5.5 percent, World Bank senior economist Kevin Chua said in a virtual briefing.</p><p>The figure is below the government&#x27;s growth target of 6 to 7 percent for 2021. The initial target was also downgraded from 6.5 to 7.5 percent.</p><p>&quot;Also, in the second quarter of 2021, we&#x27;ve seen the imposition of quarantine measures alongside the increase in COVID-19 cases,&quot; Chua said.</p><p>Moving forward, Chua said the World Bank is looking at better recovery prospects for the Philippines as long as it&#x27;s able to avoid another resurgence in infections.</p><p>Aside from ramping up its COVID-19 response and mass vaccination roll-out, effectively delivering social protection programs will help boost the Philippines&#x27; recovery prospects, Chua said.</p><p>Gross domestic product contracted by 9.6 percent in 2020, its worst since the end of World War 2, due to the impact of COVID-19. </p><p>The economy fell 4.2 percent in the first quarter of 2021 but it has been showing <a href="https://news.abs-cbn.com/business/05/11/21/philippine-economy-first-quarter">signs of recovery</a>, authorities have said. </p><p>The Asian Development Bank earlier said the economy could grow by <a href="https://news.abs-cbn.com/business/04/28/21/philippine-economy-growth-45-percent-2021-adb">at least 4.5 percent</a> this year. </p><p>Another lockdown was imposed on March 29 after the confirmed daily COVID-19 cases surged. Quarantine measures in the NCR Plus areas have since been relaxed.</p><p>Despite the imposition of another lockdown, which was less strict compared to last year, the Philippines has time to &quot;catch up&quot; on its growth targets, Socioeconomic Planning Secretary Karl Kendrick Chua said during the pre-SONA economic briefing. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/04/26/21/philippine-economy-75-percent-gdp-growth-neda-karl-chua">PH economy has time to grow up to 7.5 pct this year despite lockdowns: NEDA</a></li>	<li><a href="https://news.abs-cbn.com/business/04/28/21/philippine-economy-growth-45-percent-2021-adb">Philippine economy seen to grow by 4.5 percent &#x27;or higher&#x27; in 2021: ADB</a></li></ul><div><strong>RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1632685" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div><div><strong>-- with reports from Bruce Rodriguez, ABS-CBN News</strong></div>

<p>The World Bank on Tuesday downgraded its Philippine economic forecast citing the resurgence in COVID-19 cases and reimposition of restrictions that could affect recovery this year. </p>

The World Bank on Tuesday downgraded its Philippine economic forecast citing the resurgence in COVID-19 cases and reimposition of restrictions that could affect recovery this year.