BSP eyes pre-pandemic GDP growth by Q4 2022 or Q1 2023

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno anticipates the Philippine economy will return to its pre-pandemic GDP growth levels by the fourth quarter of 2022 or the first quarter of 2023.

However, he noted that the post-COVID economic landscape will fundamentally differ from the pre-pandemic era, with some industries potentially struggling to recover while new ones emerge.

Diokno's previous projection of recovery by the fourth quarter of 2022 was pushed back due to the reimposition of stricter lockdowns in August.

The Philippine economy experienced a significant expansion of 11.8 percent in the second quarter of 2021, a recovery after five consecutive quarters of contraction.

Authorities are optimistic about economic recovery for the current year, projecting a growth target range of 4 to 5 percent, though the speed and efficiency of vaccine deployment are crucial for freeing up more sectors.

Before the pandemic, the local economy had an annual growth average of between 6-7 percent, but it contracted by 9.57 percent in 2020 and declined by 3.9 percent in the first quarter of 2021.