Economics
Philippines Faces U-Shaped Recovery: Central Bank Governor
- Strong fiscal position means country doesn’t face default risk
- Inflation set to average low end of target range, Diokno says
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The Philippines is poised for a U-shaped economic recovery in 2021 after a likely recession this year as the pandemic halted most of the economy since mid-March, central bank Governor Benjamin Diokno said.
Growth will probably bounce back to about 7.7% in 2021 after an estimated 0.2% contraction this year as government policy support measures “gain traction,” Diokno said in a text message to reporters. “The strong recovery is based on the assumption that the pandemic is contained in the second half of 2020.” The country won’t risk a debt default given its strong fiscal position, he said.