Economy seen shrinking 8 to 9 pct this year, stimulus 'stingiest' more needed for growth: economist

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<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2020/business/11/09/20200823-covid19-quarantine-baclaran-5599-md.jpg"/><figcaption>People flock along the rows of shops in Parañaque City on August 23, 2020 amid the return of Metro Manila under general community quarantine. <em>Mark Demayo, ABS-CBN News</em></figcaption></figure></div><p>MANILA - An economist said Monday the Philippine economy is likely to contract 8 to 9 percent this year because of the impact of the pandemic, the measures implemented to contain the virus, as well as the insufficient government stimulus for the economy. </p><p>This was worse than the 5.5 percent whole year contraction forecast by <a href="https://news.abs-cbn.com/business/08/06/20/ph-economy-to-shrink-55-percent-this-year-as-second-quarter-gdp-falls-to-worst-on-record">economic managers</a> in August. </p><p>The International Monetary Fund, meanwhile forecast an 8.3 percent whole year contraction in a <a href="https://www.imf.org/en/Publications/WEO/Issues/2020/09/30/world-economic-outlook-october-2020">report released last month</a>.</p><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/gAZWU96QkYI?enablejsapi=1" width="560"></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><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/08/06/20/philippines-second-quarter-gdp-recession">Philippines falls into recession as second quarter GDP dives 16.5 percent</a></li></ul><p>On the eve of the release of official gross domestic product figures, economist Calixto Chikiamco said the government should have increased spending, even more, to prop up the economy. </p><p>“We had the strictest and longest lockdown periods in the world, also stingiest in economic stimulus,” Chikimaco said in an interview with ANC. </p><p>Chikiamco blamed the strict lockdowns for cratering consumption, which he said accounts for around 70 percent of the economy, which in turn caused the economy to fall into recession.</p><p>He also said the government’s efforts to stimulate the economy were not enough. </p><p>“I think that we should have a bigger economic stimulus package than what we have now because Bayanihan 1 and 2 are only about 3 percent of GDP or less, whereas other countries have a bigger share of economic stimulus,” he said. </p><p>Besides allocating more money for stimulus spending, Chikiamco noted that the government has also been slow at disbursing the allotted money. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/10/19/20/dbm-yet-to-release-p34b-to-agriculture-tourism-sectors-under-bayanihan-2-senators">DBM yet to release P34B to agriculture, tourism sectors under Bayanihan 2: senators</a></li></ul><p>Chikiamco said these were some of the reasons why the Philippines is projected to suffer the worst “economic scars” from the COVID-19 pandemic in Asia, besides India, according to a recently released report by the International Monetary Fund. </p><div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2020/business/11/09/imf-report.jpg"/><figcaption><em>World Economic Outlook, IMF (Truncated for focus)</em></figcaption></figure></div><p>The Bangko Sentral ng Pilipinas has said that it expects third quarter GDP to be better than the &quot;rock bottom&quot; second quarter figures after the reopened economy showed &quot;positive indicators.&quot;</p><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/qpDkiX2yRl8?enablejsapi=1" width="560"></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>

<p>An economist said Monday the Philippine economy is likely to contract 8 to 9 percent this year because of the impact of the pandemic, the measures implemented to contain the virus, as well as the insufficient government stimulus for the economy. </p>

An economist said Monday the Philippine economy is likely to contract 8 to 9 percent this year because of the impact of the pandemic, the measures implemented to contain the virus, as well as the insufficient government stimulus for the economy.

Economy seen shrinking 8 to 9 pct this year, stimulus 'stingiest' more needed for growth: economist | ABS-CBN

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Economy seen shrinking 8 to 9 pct this year, stimulus 'stingiest' more needed for growth: economist

Economy seen shrinking 8 to 9 pct this year, stimulus 'stingiest' more needed for growth: economist

ABS-CBN News

Published Nov 09, 2020 12:13 PM PHT

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economic growth

recession

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