In the next four decades, the economic cost of the pandemic could reach ₱41 trillion.
This was the prognosis of the National Economic and Development Authority (NEDA) as it also said the pre-pandemic growth trend would be unlikely to come by until after a decade.
MANILA — With this scenario, the Bangko Sentral ng Pilipinas (BSP) would probably keep policy rates steady until the end of next year amid expectations of elevated inflation in the coming months and weak economic recovery, says Pantheon Macroeconomics Senior Asia Economist Miguel Chanco.
“Together with appropriate fiscal and health interventions, keeping a steady hand on the BSP’s policy levers will allow the momentum of economic recovery to gain more traction by helping boost domestic demand and market confidence,” says BSP Governor Benjamin Diokno during an online news briefing.
The country’s central bank kept the benchmark policy rate at a record low on Thursday, 23 September, as it tries to boost an economy battered by coronavirus lockdowns, while expecting consumer prices to rise faster in the coming years due to low supply.
The BSP left the key rate at 2 percent, while overnight deposit and lending rates were also kept at 1.5 percent and 2.5 percent.
“The acceleration of the Government’s vaccination program and a recalibration of existing quarantine protocols will be crucial in supporting economic activity while safeguarding public health and welfare,” he says.
Mr Diokno says the outlook for recovery continues to hinge on timely measures to prevent deeper negative effects on the Philippine economy.
The economy grew by 11.8 percent year-on-year in the second quarter, ending a recession after five straight quarters of decline. (JD/Headline PH)