The central bank will keep its accommodative monetary policy plans for as long as needed to ensure a strong and sustainable economic recovery from the coronavirus pandemic, its governor said yesterday.
Bangko Sentral ng Pilipinas Governor Benjamin Diokno also said he expects a “strong recovery” in the second quarter after a contraction in the first quarter. Policymakers will meet on Thursday to decide on key interest rates, while second-quarter economic data will be released today.
The country’s gross domestic product (GDP) shrank by 3.9 percent in the first quarter, the Philippine Statistics Authority (PSA) said, revising the figure from an initial 4.2 percent contraction.
“Major contributors to the revision were professional and business services, from -6.5 percent to -4.4 percent; construction, from -24.2 percent to -22.6 percent; and real estate and ownership of dwellings, from -13.2 percent to -11.7 percent,” the PSA said.
Net primary income from the rest of the world and gross national income both recorded upward revisions from -75.8 percent to -75.6 percent and -10.9 percent to -10.6 percent, respectively, in the first quarter of 2021.
“The PSA revises the GDP estimates based on an approved revision policy which is consistent with international standard practices on national accounts revisions,” the PSA said.
In July, economic managers said GDP growth this year will likely be between 6 and 7 percent, but a two-week lockdown of the capital region to contain the more infectious Delta coronavirus variant could undermine the outlook.
“Looking ahead, we see a strong growth of around 7.7 percent in 2022 and 6.5 percent in 2023,” Diokno told ANC news channel.
GDP fell by a record 9.6 percent in 2020, owing to tight and lengthy coronavirus lockdowns that stifled consumer spending and business activities. — Reuters and A. Celis
