Authorities believe the “worst is over” for the domestic economy this year as its continued reopening boosts economic activities.
Even if it remains in contraction in the fourth quarter of 2020, the economy is seen to improve and could even record positive growth starting next year.
The fourth-quarter output could stay between -8 to -9 percent while it is projected to range between 6 to 7 percent next year, said Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort.
“The estimate for this year is somewhere between -9.5 percent to -7 percent,” he said.
The government on Tuesday reported that growth, as measured by gross domestic product (GDP), posted an -11.5 percent print in the third quarter, better than the -16.9 percent in the previous quarter.
In the first nine months this year, growth contracted by around 10 percent, deeper than the -5.5 percent full year projected by economic managers.
Domestic output is expected to recover between 6.5 to 7.5 percent next year before eventually getting back on track on its original growth path by 2022.
Photo by PNA