Metro Manila (CNN Philippines, October 13) — Another global institution has rolled back its growth forecast for the Philippines this year as the country continues to grapple with the COVID-19 health crisis.
In its World Economic Outlook published Tuesday, the International Monetary Fund listed a 3.2% growth projection for the country in 2021. This is a far cry from its 5.4% forecast in June, which was likewise a downgrade from the initial 6.9%.
The latest figure falls short of the revised 4-5% target band set by economic managers for the year.
While national economic output grew by 11.8% annually from April to June, the Philippine Statistics Authority said it contracted by 1.3% quarter-on-quarter on a seasonally adjusted basis.
Main economic hub Metro Manila reverted to tight lockdowns in August as authorities aimed to stomp the surge in COVID-19 infections driven by the feared Delta coronavirus variant.
The region is now under Alert Level 4 of the piloted COVID-19 alert level system, which does away with community-wide quarantine classifications and instead mainly utilizes granular lockdowns.
The global lender also expects slower growth for the Philippines next year at 6.3%, compared to the previous 7% projection. The earlier forecast was an upgrade from its initial 6.5% expectation.
The IMF projects the global economy to expand by 5.9% this year — slightly down from its prior 6% prospect — while it kept its 4.9% forecast for 2022.
“The downward revision for 2021 reflects a downgrade for advanced economies—in part due to supply disruptions—and for low-income developing countries, largely due to worsening pandemic dynamics,” read the report.