BSP says 5 to 6 pct economic growth target for 2021 'attainable'


Posted at Nov 15 2021 09:24 AM

Shoppers go around the Divisoria market in Manila on Sunday, November 14, 2021. 
Shoppers go around the Divisoria market in Manila on Sunday, November 14, 2021. 

MANILA - A gross domestic product growth of 5 to 6 percent seems attainable this year, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said over the weekend, after the economy grew 7.1 percent in the third quarter. 

For the second quarter, GDP growth was raised to 12 percent. 

"The GDP prospects appear bright," Diokno said in a statement. "A 2021 full year growth rate of 5-6 percent is attainable," he said. 

In addition, the 7 to 9 percent GDP outlook for 2022 as well as the 6 to 7 percent for 2023 also look "doable" as the vaccination rollout continues to gain pace thus reducing COVID-19 cases, Diokno said. 

"These latest forecasts suggest that the country’s real output will revert to its pre-pandemic level by the third quarter of 2022, if not sooner," Diokno said.

Socioeconomic Planning Secretary Karl Chua also said the economy could go back to its pre-pandemic level next year. 

Inflation slowed in October due to stabilizing prices of meat and fish. Workers are also re-entering the workforce as the economy reopens further. The vaccine rollout is also influencing consumer confidence as economic activity expands, Diokno said.

For 2021, inflation is likely to settle at 4.3 percent, 3.3 percent in 2022 and 3.2 percent for 2023, the latest estimates showed. 

This suggests that the BSP "may continue to be patient and continue its accommodative monetary policy stance," Diokno said.

The central bank governor earlier said the BSP is likely to keep interest rate at the current level for the rest of the year.


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