Diokno says 2021 economic growth could still hit 6%

Philippine economic growth could still hit 6% given the performance recorded in the second and third quarters, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said.

In a message to reporters, Diokno expressed his optimism that the country’s economy is expected to have continued its uptrend in the last three months of the year.

“The GDP prospects appear bright. With the adjusted second-quarter GDP real growth of 12%, followed by a 7.1% growth in the third quarter, a 2021 full-year growth rate of 5% to 6% is attainable,” he said.

“Based on the recent developments including the ramped up vaccine rollout and the ebbing COVID-19 cases, the DBCC’s growth targets of 7% to 9% in 2022 and 6% to 7% in 2023 look doable,” he said.

The Philippine Statistics Authority (PSA) last week reported third-quarter economic growth figures, indicating a continued expansion in July to September, albeit slower than that seen in April to June.

The economy, however, continues to be 5.7% short of the levels seen before the COVID-19 hit the country.

In terms of inflation, Diokno noted that consumer price hikes have been decelerating, despite being above the central bank’s target range of 2% to 4%.

The BSP now expects inflation to clock in at 4.3% this year, slower than the September outlook of 4.4%. It is then expected to ease to 3.3% in 2022, and 3.2% in 2023.

“This suggests that the BSP may continue to be patient and continue its accommodative monetary policy stance given the current domestic, external, and financial developments,” Diokno said Sunday.

“These latest forecasts suggest that the country’s real output will revert to its pre-pandemic level by the third quarter of 2022, if not sooner,” he added. — BM, GMA News