THE World Bank (WB) has downgraded its gross domestic product (GDP) growth forecast for the Philippines this year as the coronarivus disease 2019 (Covid-19) pandemic remains a big problem for the government.
In a report released on Friday, the WB said it is now estimating Philippine GDP growth of 5.5 percent, or lower than its earlier forecast of 5.9 percent. This is much lower than the 6.5 to 7.5 percent growth projection of the government this year. The country’s economy contracted by 9.5 percent last year.
The WB said the Covid-19 pandemic will continue to affect the livelihood of Filipinos.
“In the Philippines, where containing the virus remains a challenge, households in the richest quintile are less likely to report earnings declines and those who do, report lower losses than their poorer counterparts,” it stressed.
It also stressed that the poor also suffer the most during crisis like the pandemic.
“For example, when faced with income losses, poorer households are more likely to reduce their food consumption, accumulate debt, and sell assets, all of which may undermine their ability to recover from the crisis,” it added. SOVEREIGNPH