President Duterte’s economic team is now seeing a brighter light at end of the tunnel as the inter-agency Development Budget Coordination Committee (DBCC) expressed optimism that the Philippine economy may return to its pre-pandemic levels by next year.
The DBCC, which sets the macroeconomic targets of the country, maintained on Monday, July 19, its gross domestic product (GDP) goal of 6.0 percent to 7.0 percent for this year despite the prolonged coronavirus pandemic.
According the DBCC, the 2021 growth target range is attainable due to declining number of COVID-19 cases in the country since the peak in April and the gradual reopening of the economy with more targeted granular lockdowns.
The economy managers also kept the 7.0 percent to 9.0 percent GDP target for next year as well as 6.0 percent to 7.0 percent assumption for 2023 and 2024.
“To support this outlook, the DBCC emphasized its support to manage risks and continue the gradual and safe reopening of the economy, subject to the strictest compliance to minimum public health standards,” the committee said.
Moreover, the DBCC reiterated the need to intensify the implementation of the prevent, detect, isolate, treat, and recover (PDITR) strategy, along with the full vaccination of residents in high-risk areas to will regain consumer and business confidence.
But as the quick-spreading Delta variant poses a threat in the Philippines, the DBCC said the country needs to improve its health system capacity and prevent community transmissions.
“The relaxation of quarantine restrictions in high-risk areas must be complemented with an accelerated vaccination roll-out, in order to allow more businesses to operate and consumers to participate in socio-economic activities,” the DBCC said.
According to the economic team, the government has so far released P665.72 billion to fund its COVID-19 response and mitigate the losses of low-income households, small businesses, and other vulnerable sectors.
“With these actions, the DBCC is optimistic that the country’s GDP may return to its pre-pandemic levels as early as 2022,” the committee said.
However, it also said the economic team will review the GDP growth projections after the release of the second-quarter growth performance in August.
“The DBCC remains committed to restoring jobs and building a stronger and more competitive economy, while sustaining the Duterte administration’s legacy of real change for future generations,” the inter-agency said.