ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Economy

Philippines slashes 2021 economic growth target amid lockdown

Expansion of 4% to 5% is now expected, down from 6% to 7%

Filipinos wait for COVID-19 vaccine shots outside a mall in Manila. The government says it now expects much slower growth as the delta variant and its repercussions rip through the econmy.   © Reuters

MANILA (Reuters) -- The Philippines lowered its economic growth target for this year, reflecting the impact of a two-week lockdown of the capital region to contain the spread of the Delta coronavirus variant, a government interagency said on Wednesday.

This year's growth target was cut to 4% to 5% from the 6% to 7% expected previously, the Development Budget Coordination Committee (DBCC) said in a statement.

Next year's growth target was kept at 7% to 9%.

The downgrade was still a significant improvement from last year's record contraction of 9.6%.

"Our strategy is to continue managing the risks carefully by imposing granular quarantines while allowing a vast number of people to earn a living," the DBCC said.

The Southeast Asian nation, which was among the fastest-growing economies in Asia before the pandemic, exited recession in the second quarter, after five consecutive quarters of contraction.

But a renewed surge in COVID-19 cases, driven by the virulent Delta variant, forced authorities to impose a two-week lockdown of the capital region, undermining the economy's expected rebound this year.

More than a year and a half into the pandemic, reported coronavirus infections in the Philippines have soared to more than 1.77 million, the second-highest level in Southeast Asia, while deaths have exceeded 30,600.

The Philippines has so far fully immunized around 11% of its 110 million people against COVID-19, leaving millions still vulnerable.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more