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Asian Development Bank Sees a Rosy Economic Growth for the Philippines Next Year.

  • The Asian Development Bank sees strong economic growth for the Philippines in 2021.
  • The Philippine economy shrank for the first time in 22 years, going down by 0.2 percent in the first quarter of 2020.
  • The BSP Governor cited the country’s strong fiscal position, local banks’ buffering, and economic and tax reforms which will help keep the economy afloat in 2021.
  • Visit The Financial Today’s homepage for more stories.

Amid the COVID-19 pandemic and months-long nationwide quarantine, the Asian Development Bank sees strong economic growth for the Philippines in 2021.

Asian Development Bank Senior Economist James Villafuerte said that the international lender is optimistic about a quick recovery of the economy in 2021 for the Philippines and most Asian countries. “That’s because we expect a very bad economic outcome this year which means that there’s much opportunity for growth next year,” said Villafuerte in an interview with ANC. “I agree, there’s room for a strong bounce-back for the Philippines next year.”

The Philippine economy shrank for the first time in 22 years, going down by 0.2 percent in the first quarter of 2020. The recession was triggered by stringent lockdown measures in Luzon and the temporary closure of businesses amid the pandemic.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno also made a similar forecast, stating that the country is likely to see a 7 or 8 percent economic growth next year, despite the bank’s projected economic contraction of 2 to 3.4 percent this year.

“By next year, we are anticipating a growth of seven to eight percent, and that’s the consensus among international organizatons,” said Diokno in an interview.

Diokno cited the country’s strong fiscal position, local banks’ buffering, and economic and tax reforms which will help keep the economy afloat in 2021.

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