The Philippines Was an Economic Star. Until Covid-19
Growth was poised to outpace long-time regional winners such as China, Indonesia and India. The outbreak could change the calculus.
How to social distance in one of the world’s most densely populated cities?
Photographer: Veejay Villafranca/BloombergJust when the Philippines was finding its groove after decades in the economic wilderness, along came the Covid-19 pandemic.
During the past five years, growth averaged more than 6% and was projected to exceed 7% this year, vaulting ahead of long-time regional stars like China, Indonesia and India. More likely now is an expansion of just 3% in January to March, followed by a contraction the next two quarters, according to the central bank. Steep cuts to interest rates and purchases of government bonds won't alter that prognosis; it’ll merely prevent the damage from being worse still.