Taking into consideration the impact of recent typhoons that partly hindered chances of economic recovery brought about by improved people’s mobility and employment, S&P Global is keeping its growth forecasts for the Philippines for this year and 2021.
S&P forecasts a 9.5-percent growth contraction for the domestic economy this year on account of the coronavirus disease 2019 (Covid-19) pandemic, but a 9.6-percent recovery is projected for 2021.
“As before, the base-effect-driven high growth rates for the upcoming years mask the fact that the level of GDP (gross domestic product) will remain far below the pre-Covid trend even by the end of our forecast horizon,” S&P said..
The report cited the progress in domestic economic activity following the easing of movement restrictions.
For one, third-quarter GDP posted a shallower contraction of 11.5 percent from the decades-high -16.9 percent the previous quarter.
However, while economic activities have registered some improvements as quarantine controls are slowly being lifted, the impact of Typhoons Quinta, Rolly and Ulysses, among others, which ravaged several parts of Luzon last October and early November, are considered as setbacks.