The Philippine economy could expand within target levels this year if easing of quarantine measures is sustained and deployment of coronavirus disease 2019 (Covid-19) vaccines is done.
Domestic growth, as measured by gross domestic product (GDP), could be between 6 to 7 percent this year, close to the 6.5-7.5 percent target of economic managers, according to Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort.
He said the timely approval of the PHP4.5-trillion national budget for this year is also a plus since it will ensure that infrastructure programs will be financed.
He also projects the passage of priority reform bills like the Corporate Recovery and Tax Incentives for Enterprises (CREATE), which will reduce corporate income tax (CIT); and the Financial Institutions Strategic Transfer (FIST) bill early this year.
Further cut in banks’ reserve requirement ratio (RRR), which has been reduced by as much as 200 basis points last year, is also seen as a boost to the domestic economy as this will further lower borrowing costs.