The Philippines faces a tougher time for the rest of the year with the economy seen sinking deeper because of its inability to control the pandemic, according to the World Bank’s East Asia and Pacific Economic Update.
Following a sharper than expected contraction in the second quarter, the World Bank has downgraded Philippines’ economic growth forecast this year to a contraction of 6.9% due as due the devastation wrought by Covid-19.
According to the World Bank, Philippines’ economic recovery will much slower than most of the countries because of its failure to control the virus outbreak.
The prolonged economic downturn is also expected to plunge an additional 2 million people into poverty.
Recovery, however, is expected in 2021 but this is all depends on how fast the outbreak will be contained, the World Bank said.