Diokno: Philippine economic growth to return to pre-pandemic levels in 2022

The Philippine economic growth is poised to return to pre-pandemic levels in 2022 when a "full recovery" is likely to be seen, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said Thursday.

In a virtual briefing, Diokno said he is optimistic that the economic performance is expected to improve starting in the third quarter, and bounce back by 2021 before returning to pre-pandemic levels the following year.

"I've been quoted as saying that 2021 will be a recovery year for us. We expect the economy to bounce back by maybe between 6.5 to 7.5%, but that means we have not fully recovered," he told reporters.

"Full recovery will take place in 2022, so we will be a contraction this year 2020, recovery next year, but we will be back to our 2019 GDP (gross domestic product) by 2022," he added.

The economy contracted by 16.5% in the second quarter of the year mostly due to the COVID-19 pandemic, bringing the Philippines into a technical recession. Third-quarter figures are scheduled to be released next week.

Prior to the pandemic, the Philippines reported a 5.9% economic growth in 2019, the slowest pace in eight years, following the failure of Congress to pass a national budget on time.

For this year, economic managers are expecting the economy to contract by as much as 5.5%, taking in the effects of the community quarantines set in place since March to curb the spread of COVID-19. —KBK, GMA News