Bangko Sentral ng Pilipinas Governor Benjamin Diokno remains optimistic the corporate sector will recover this year after posting declines in net profits last year due to the COVID-19 pandemic.
In an online briefing on Thursday, Diokno said the recovery could be hastened by the gradual easing of business restrictions. The Philippine economy is to grow between 6.5 and 7.5 percent in 2021.
“The BSP is closely monitoring the impact of the COVID-19 pandemic on the corporate sector as its financial conditions have significant implications to the formulation of sound and well-informed monetary, financial and economic policies,” Diokno said.
The pandemic has taken its toll on the corporate sector as firms reported net losses and declines in net income in 2020, reflecting the impact of the crisis on the corporate sector’s financial conditions.
The easing of quarantine restrictions in the second half of 2020 has helped reinvigorate economic activities.