Philippine economy 'unlikely' to worsen in 2021, says BSP Gov. Diokno

ABS-CBN News

Posted at Sep 11 2020 11:37 AM | Updated as of Sep 11 2020 11:46 AM

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MANILA - The economy is "unlikely" to worsen in 2021, Bangko Sentral ng Pilipinas Gov. Benjamin Diokno said Friday, as the recurrence of the total lockdowns in April and May due to COVID-19 is not expected.

Diokno also answered queries about the recent Social Weather Stations (SWS) survey which showed that 2 out of 5 Filipinos expect the economy to worsen in the next 12 months.

"Yang SWS survey ay isang perception survey...Sa tingin ko unlikely naman, like yung na-experience natin na total lockdown nung April, May, I don't think na mangyayari yun," Diokno said.

(The SWS survey is a perception survey. In my opinion, that is unlikely since the total lockdown in April and May, I don't think that will happen.)

"Unlikely na magiging worse pa yan compared halimbawa sa na-experience natin nung second quarter. Kaya nga we’re optimistic na by the third quarter may kaunting activity na tayo, 4th quarter mas maganda," he added.

(It is unlikely to get worse compared to the second quarter. That's why we're optimistic that by the third quarter there is more activity, 4th quarter will be better.)

The Philippines fell into recession after the gross domestic product dived 16.5 percent in the second quarter. The economy could shrink by 5.5 percent this year, government estimates showed.

Diokno said remittances could suffer a 5 percent decline this year, but not as much as 20 percent based on an estimate by the Asian Development Bank.