The World Bank said Monday it expects the Philippines to grow 5.5 percent this year, after contracting by 9.6 percent in 2020 amid the pandemic.
It said growth would be faster at 6.3 percent in 2022 and 6.2 percent in 2023.
The bank said the Philippines experienced the sharpest contraction of output among the largest economies of the region, reflecting an uncontrolled COVID-19 outbreak, combined with strict nationwide lockdowns and mobility restrictions, a succession of natural disasters, and delays in budget execution which weighed on public investment.
“The pandemic is likely to increase inequality in both the short and longer terms. In the Philippines, where containing the virus remains a challenge, households in the richest quintile are less likely to report earnings declines, and those who do, report lower losses than their poorer counterparts,” it said.
The World Bank said that in the Philippines, GDP was still significantly below pre-pandemic levels, with earning and employment losses accounting for close to 8 percent of the gross domestic income.