To help the economy recover, limitations are being eased and a vaccine program is being implemented
This year’s economic recovery is anticipated to be aided by refinements to the government’s mobility limitations regulations, as well as a stronger execution of the immunization program.
“We believe that these will be key factors in sustaining the recovery that we saw from late last year to the second quarter of this year,” Zeno Ronald Abenoja, managing director of the Bangko Sentral ng Pilipinas (BSP) Department of Economic Research (DER), said in a virtual briefing on Thursday, October 7, 2021.
Abenoja also cited the central bank’s accommodating monetary policy as a positive factor in the economy’s recovery, citing the BSP’s infusion of more than PHP2 trillion in liquidity since last year through various measures such as policy rate cuts, bank reserve requirement ratio (RRR) reductions, and temporary cash advances to the government.
“There’s some uncertainty on the growth route, and that’s mostly due to viral worries,” he added, alluding to the coronavirus illness of 2019. (Covid-19).
According to Abenoja, the government has enough vaccinations to inoculate the target population, but the immunization drive’s complete success is contingent on vaccine delivery.
“Those essential components, together with the refining of the limitation and lockdown procedures, as well as ongoing fiscal stimulus and monetary policy accommodations, may support the 4-percent growth goal for this year and at least 7-percent growth target for next year,” he said.
The domestic economy, as measured by GDP, increased by 11.8 percent in the second quarter of this year, breaking a five-quarter period of negative growth owing to the pandemic’s effect.
After noting “green shoots” in different sectors such as manufacturing, exports, and imports, economic managers are hopeful about the home economy’s revival this year.
The administration has pledged to continue reducing mobility restrictions and opening up the economy to enable more people to work and increase economic activity.