BSP Chief on Economic Recovery: V-Shaped at Best, U-Shaped at Worst

The head of the country’s central bank said on Wednesday that the Philippine economy will surely be adversely impacted by the coronavirus epidemic, but that the question of how fast the recovery will be will depend on the success of the ongoing lockdown.

Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the Luzon-wide community isolation “will definitely have an impact” on the economy, but “if it succeeds, the adverse impact will be minimal and we can expect a V-shaped recovery.”

Economic managers have yet to release revised economic growth forecasts to account for the COVID-19 outbreak’s effects, but third-party analysts are predicting slower GDP growth.

Diokno pointed out that the 30-day lockdown period straddles two economic quarters, the first and the second, and the focus “should be on how to make the Luzon-wide community isolation measure work.”

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