Publication:
Philippines Economic Update, June 2021: Navigating a Challenging Recovery

Simple item page
dc.contributor.authorWorld Bank
dc.date.accessioned2021-06-08T14:01:08Z
dc.date.available2021-06-08T14:01:08Z
dc.date.issued2021-06-04
dc.description.abstractThe resurgence of COVID-19 cases and reimposition of more stringent quarantine measures held back the early signs of an economic rebound. The downside risk of a resurgence of infection, identified in the PEU December 2020 edition, has unfortunately materialized. The number of daily cases increased from an average of 1,400 in December 2020 to nearly 10,000 in April 2021. The surging cases prompted the authorities to reimpose stricter quarantine measures in Metro Manila and nearby provinces for more than one-and-a-half months between April and May. Since then, daily cases have gone down gradually and critical care occupancy rates have eased. However, the quarantine and movement restrictions have hampered people's mobility, adversely affecting domestic activity. The economy contracted by 4.2 percent year-on-year in the first quarter of 2021 amid prolonged implementation of containment measures. The country registered the worst growth performance among peers in the region such as Thailand (-2.6 percent), Indonesia (-0.7 percent), Malaysia (-0.5 percent), and Vietnam (4.5 percent). The growth contraction was fueled by weak domestic demand, driven by the combination of containment measures, weak confidence, and rising inflation. Meanwhile, tepid external demand was driven by the sharp contraction in services exports amid lingering restrictions and weak demand for international tourism while goods exports recovered. The public sector was the main driver of growth with an expansionary budget. The authorities are supporting the economic recovery by accelerating public spending. Stimulus spending and infrastructure investment drove public spending from 19.1 percent of GDP in the first quarter of 2020 to 23.4 percent of GDP in the same period in 2021. The spending is in line with the continuing implementation of the pandemic response measures under the "Bayanihan to Recover as One" Law (Bayanihan 2) which was extended to June 30, 2021. The higher spending comes at a time when public revenues fell from 17.2 percent of GDP in the first quarter of 2020 to 16.0 percent of GDP in the same period in 2021. This resulted in an increase in the fiscal deficit to 7.4 percent of GDP in the first quarter of 2021 from 1.9 percent of GDP a year ago. The widening deficit was accompanied by an increase in the public debt ratio from 54.5 percent of GDP by end-2020 to 60.4 percent of GDP as of end-March 2021.en
dc.identifierhttp://documents.worldbank.org/curated/en/380011623076770757/Philippines-Economic-Update-Navigating-a-Challenging-Recovery
dc.identifier.doi10.1596/35690
dc.identifier.urihttps://hdl.handle.net/10986/35690
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectECONOMIC GROWTH
dc.subjectEXCHANGE RATE
dc.subjectEXTERNAL SECTOR
dc.subjectMONETARY POLICY
dc.subjectFISCAL TRENDS
dc.subjectEMPLOYMENT
dc.subjectPOVERTY
dc.subjectECONOMIC OUTLOOK
dc.subjectSHARED PROSPERITY
dc.subjectRISKS
dc.subjectDECENTRALIZATION
dc.subjectBUDGET EXECUTION
dc.titlePhilippines Economic Update, June 2021en
dc.title.subtitleNavigating a Challenging Recoveryen
dc.typeReporten
dc.typeRapportfr
dc.typeInformees
dspace.entity.typePublication
okr.crossref.titlePhilippines Economic Update, June 2021
okr.date.disclosure2021-06-07
okr.date.doiregistration2025-05-07T09:05:11.701619Z
okr.doctypeEconomic & Sector Work
okr.doctypeEconomic & Sector Work::Economic Updates and Modeling
okr.docurlhttp://documents.worldbank.org/curated/en/380011623076770757/Philippines-Economic-Update-Navigating-a-Challenging-Recovery
okr.guid380011623076770757
okr.identifier.externaldocumentum090224b08869a475_1_0
okr.identifier.internaldocumentum33146669
okr.identifier.report160081
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/380011623076770757/pdf/Philippines-Economic-Update-Navigating-a-Challenging-Recovery.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryPhilippines
okr.topicMacroeconomics and Economic Growth::Business Cycles and Stabilization Policies
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicMacroeconomics and Economic Growth::Economic Policy, Institutions and Governance
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicPoverty Reduction::Achieving Shared Growth
okr.topicPublic Sector Development::Decentralization
okr.unitMacroeconomics, Trade and Investment Global Practice
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
Philippines-Economic-Update-Navigating-a-Challenging-Recovery.pdf
Size:
6.17 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
Philippines-Economic-Update-Navigating-a-Challenging-Recovery.txt
Size:
362.81 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Economic Updates and Modeling