Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Friday the government’s 2021 gross domestic product target range of 6.5 percent to 7.5 percent is doable, as he expressed optimism about gradual recovery in the coming months from the record 9.5-percent contraction in 2020 amid the COVID-19 pandemic.
Diokno, in an online economic forum, cited a number of factors supporting this optimism. He said that at the peak of the pandemic in 2020, the country’s macroeconomic fundamentals remained broadly intact.
These indicators included the quarter-on-quarter improvements in GDP outturn towards year-end; better business and consumer outlook; within-target inflation; ample liquidity in the system; sound and stable banking system; robust external payments position; and manageable fiscal deficit.
He said that by reallocating resources to sectors which needed help the most, the economy was able to register sustained improvements on a quarter-on-quarter basis. Data showed that from the 16.9-percent contraction recorded in the second quarter of 2020, the economy registered slower declines of 11.4 percent and 8.3 percent in third quarter and fourth quarter, respectively.