The World Bank has lowered its forecast on the Philippines' gross domestic product growth for 2021 to 4.7 percent from 5.5 percent in March, according to an updated report released by the bank on June 8.

A policeman (right) monitors people at the entrance to a neighbourhood under strict quarantine measures in Pasay City, suburban Manila (Photo: AFP)

Under the impact of the COVID-19 pandemic, the Philippine Economic Update said the economy is forecast to grow at 4.7 percent this year before accelerating to 5.9 percent in 2022 and 6.0 percent in 2023.

These forecasts reflect revisions to growth projections due to the larger-than-expected economic contraction in the first quarter, the reimposition of stricter quarantine measures in April and May in response to a surge in COVID-19 infections, and the lingering challenges from high inflation and losses in household incomes, the report said.

It said the resurgence of COVID-19 cases and reimposition of more stringent quarantine measures held back the early signs of an economic rebound.

Meanwhile, Ndiame Diop, World Bank Country Director for Brunei, Malaysia, the Philippines, and Thailand, said the global economic rebound, especially among the country's trading partners, will boost exports and increase remittances, strengthening recovery in the Philippines.

Diop stressed the need to ramp up vaccination, improving overall pandemic response to control infection rates and boost consumer and business confidence.

According to World Bank senior economist Kevin Chua, the Philippines' growth prospects hinge on the country's ability to manage the pandemic.

Source: VNA