Connect with us

Hi, what are you looking for?


PHL seen to post 2nd worst slump in East Asia

The Philippines is one of the worst-hit economies in East Asia, according to the World Bank. — PHILIPPINE STAR/MICHAEL VARCAS

THE WORLD BANK said the Philippine economy likely saw the second-worst slump in the developing East Asia and the Pacific region last year, due to the extended lockdowns and a prolonged coronavirus disease 2019 (COVID-19) outbreak.

In its Global Economics Prospects report published on Wednesday, the Washington-based multilateral lender kept its 2020 gross domestic product (GDP) forecast of an 8.1% contraction for the Philippine economy.

This is the second-steepest contraction among 14 developing economies in East Asia and the Pacific in the World Bank report, only better than Fiji’s estimated 19% GDP decline.

However, the World Bank forecast is smaller than the 8.5-9.5% slump expected by the Philippine government.

If realized, the World Bank’s estimate would be the biggest full-year economic contraction in Philippine history, after the 7% GDP contraction in 1984, based on available official data dating back to 1947.

The World Bank noted the Philippines is among the “worst-hit” economies in the region, which had “extended periods of lockdown combined with large domestic outbreaks.”

“Restrictions on economic activity to stem the pandemic have largely eased across the region, and goods exports have started to recover. Although the spread of the pandemic appears to have slowed in much of the region, infection rates remain elevated in Indonesia and the Philippines and have been increasing recently in Malaysia,” the report read.

The Health department reported 1,047 new COVID-19 infections bringing the overall tally to 480,737 as of Wednesday. This is the second highest in Southeast Asia, after Indonesia which had 788,402 COVID-19 infections as of Wednesday.

The World Bank also kept its Philippine growth forecast at 5.9% this year and 6% in 2022. This is below the Philippine government’s 6.5-7.5% growth target this year and 8-10% in 2022.

Meanwhile, the World Bank said the emerging East Asia and the Pacific region likely inched up by an average of 0.9% last year, before growing by 7.4% and 5.2% this year and next year.

Economic recovery this year is likely to be led by China which is seen growing by 7.9%, while the rest of the region could see a more prolonged recovery. — B.M.Laforga

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Federal Land, Inc. celebrates five decades of solid commitment to property development By Adrian Paul B. Conoza Philippine business visionary Dr. George S.K. Ty’s...


APPROVED foreign investment pledges more than doubled in the second quarter from a year ago, as the Philippine economy continued to reopen amid looser...


By Abigail Marie P. Yraola, Researcher APPROVED foreign investment pledges more than doubled in the second quarter from a year ago, as the Philippine...


PRESIDENT Ferdinand R. Marcos, Jr. is looking into the possibility of allowing food manufacturers to directly import sugar amid tight domestic supply and high...


By Alyssa Nicole O. Tan, Reporter A SENATOR raised the possibility of legalizing the commercial importation of secondhand garments amid the proliferation of stores...


DESPITE the president’s protectionist pronouncements, the Marcos administration will likely continue to pursue economic liberalization, analysts said. This, despite concerns over local firms’ competitiveness...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


Instagram still holds the top spot for social media in terms of building brand reputation and expanding business potential. Every day, more and more...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.