The International Monetary Fund now expects a deeper economic contraction for the Philippines as the country continues to struggle to limit the impact of the pandemic.
Yongzheng Yang, IMF resident representative to the Philippines, said the economy likely contracted by 9.6 percent in 2020 based on the January 2021 World Economic Outlook, deeper than the original forecast of a contraction of 8.3 percent last year.
IMF’s projected GDP contraction was slightly deeper than the revised 8.5 to 9.5 percent target by the Development Budget Coordination Committee in December.
The Philippines slipped into recession with a GDP contraction of 10 percent from January to September last year as the economy stalled when Luzon was placed under enhanced community quarantine in mid-March to slow the spread of COVID-19.
The IMF expects the Philippine economy to grow by 6.6 percent in 2021 and 6.5 percent in 2022.