Economics
Philippines Is Bracing for Deepest Slump in Three Decades
- Economic team sees fiscal gap hitting 8.1% of GDP this year
- GDP seen to post strong growth in 2021 after this year’s drop
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The Philippine economy could face its deepest contraction in more than three decades, with the government now projecting it to shrink by 2% to 3.4% this year in the wake of the pandemic.
The coronavirus outbreak will cost the economy 2 trillion pesos ($40 billion) this year or nearly a tenth of gross domestic product, the Development Budget Coordination Committee said in a statement on Wednesday. Massive spending will bloat the budget deficit to as much as 8.1% of GDP so the economy could return to growth of a 7.1% to 8.1% next year, it said.