Philippine‘s economy might take a longer time to recover, World Bank predicts. As the country is still struggling with COVID-19 pandemic, the Philippine’s economic might plunge even deeper. Experts fear Philippine might record more poverty cases and fall into a deeper slump.
The economy in halt, poverty arises
The Philippine’s economy relies a lot on global trade, tourism and remittances. However, with the ever-growing number of COVID-19 cases, the three sectors have been in a shut down since months. The World Bank fears with the current condition and management of COVID-19 crisis in Philippine, economic recovery is still “uneven and volatile”.
Meanwhile, poor living condition has also become the country’s main problem. The World Bank the country may account more poverty cases for the first time in 20 years. The bank noted at least 38 million people might stuck, or even get pushed back in poverty due to the pandemic.
A success retreat from the pandemic crisis, however, may result in 33 million residents escaping from poverty. According to CNN, a successful scheme may also lead to only 5 million people to be dragged into poverty. Though the nominal is still arguably terrifying, the comparison between successful and unsuccessful cases are worth to note.
Philippine slump: 9.9% forecasted
Noted from CNN, the Philippines only managed to generate a 0.9% growth this year. The country supposedly generates the digit from its poised contract with China, Vietnam, and Myanmar. With the current situation, the country foresees a growth rebound for 2021 at 7.4%.
On the bright side, the Philippines managed to stay below President Rodrigo Duterte’s economic team’s prediction for recession. While 6.5% to 7.5% was the initial prediction, the country only recorded a 5.3% recession this year.
Meanwhile, in the World Bank’s latest report, the Philippines is forecasted to bring 6.9% full-year contraction. If the country does not bring a significant change in its pandemic control, 9.9% contraction will not only become a mere prediction. The number plunged hard from World Bank’s June forecast of only 1.9% contraction.