The vaccine rollout has put the Philippines on track to a V-shaped recovery.
Trade Secretary Ramon Lopez told the Security Bank Economic Forum yesterday said this is despite the imposition of stricter quarantines starting March this year.
Lopez said while the Philippines suffered economically due to the pandemic with 2020 GDP contracting 9.5 percent, there has been signs of recovery, citing the mitigation of quarter-on-quarter GDP declines in the second half of last year and into this year.
“While we had to implement additional community quarantine lockdowns in March and April of this year that affected our first quarter GDP, we are still on track for a V-shaped recovery of our economy,” Lopez said.
He said this is supported by the worldwide rollout of vaccines and the strategic reopening of economies around the world.
Lopez said other macroeconomic indices are also pointing towards an overall improved investment climate for 2021.
Unemployment rates dropped from 17.7 percent in April last year to 7.1 percent and slowly returning to pre-pandemic levels of around 5 percent.
Lopez said the Purchasing Managers’ Index (PMI) indices are now ranging from 49.0 to 52.5 this year from a record low of 31.6 in April 2020.
Lopez also said foreign direct investments in manufacturing rose 145.86 percent, which points towards moresustainable and long-term growth of the sector.
“Improved vaccination rollout and recent decline of cases and the easing of restrictions have enabled businesses to resume operations,” he said.
Exports rose up 31.6 percent year-on-year, the fastest expansion in more than 10 years not only due to the low base last year, but even versus the pre pandemic level in 2019..
FDIs in January to February rose 20.6 percent to $1.57 billion.
