Country's Economic Potential Remains Despite Pandemic

The Philippines’ economic potential remains despite the prolonged COVID-19 pandemic that continues to wreak havoc in the communities. The National Economic and Development Authority (NEDA) is confident that the gross domestic product (GDP) would return to its pre-pandemic level by next year.

However, Socioeconomic Planning Secretary Karl Kendrick T. Chua explained that this target has a caveat, the country should further ease quarantine restrictions, while adhering to strict safety and health protocols.

Before the crisis, the Philippines had strong growth and was on track to become an upper-middle-income country in 2020, or two years ahead of its target. Inflation was also very well controlled, while the fiscal position was the strongest ever, thanks to the tax reform.

In 2020, the swift and massive shock of the COVID-19 crisis took a heavy toll on the Philippines. The economy, as measured by GDP, shrank by 9.4 percent, the nation’s worst contraction since World War II. In the first three months of 2021, the decline in economic output further deepened by 4.2 percent from a year earlier.