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Philippines GDP shrinks more than expected

Long struggle: Farmers work in a rice field south of Manila. The Philippines is expected to manage South-East Asia’s slowest recovery this year from the recession. ─ AFP MANILA: The Philippines’ economy is struggling to gain momentum as elevated numbers of Covid cases hamper reopening efforts and destroy jobs. Gross domestic product (GDP) fell 4.2% in the first quarter from a year ago, the statistics authority said, below all estimates in a Bloomberg survey of economists. The Philippines is expected to manage South-East Asia’s slowest recovery this year from the pandemic-driven recession. A return to stricter curbs in Manila and other key economic areas threatens the government’s goal – currently up for review – of at least 6.5% growth this year.

Philippines Seen Settling In for Long Rate Pause: Decision Guide

Philippines Seen Settling In for Long Rate Pause: Decision Guide Feb 11 2021, 5:12 AM February 11 2021, 2:30 AM February 11 2021, 5:12 AM (Bloomberg) The Philippine central bank is set to leave its key interest rate unchanged Thursday, in what could be an extended rate pause amid a recession and quickening inflation. (Bloomberg) The Philippine central bank is set to leave its key interest rate unchanged Thursday, in what could be an extended rate pause amid a recession and quickening inflation. Bangko Sentral ng Pilipinas will keep the benchmark rate at 2% on Thursday for a second straight meeting, according to all 19 economists surveyed by Bloomberg. In January, Governor Benjamin Diokno signaled a “long pause” on that front, saying interest rates were likely to remain at their current level for at least two more quarters.

Consumption rebound seen in third quarter

BusinessWorld February 11, 2021 | 8:05 pm HOUSEHOLD CONSUMPTION could pick up in the third quarter as sentiment improves and remittances recover, but this may not be sufficient to bring economic growth this year to pre-crisis levels, according to Standard Chartered Bank. Household consumption, on which the economy is heavily dependent, is expected to post sustainable and steady growth by the three months to September because consumer sentiment, job creation and wages are expected to remain muted in the first half, according to Chidu Narayanan, an economist at Standard Chartered, who was speaking at an economic briefing organized by the Bank Marketing Association of the Philippines.

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