Manila Bulletin
BSP sees 2% inflation this year
The Bangko Sentral ng Pilipinas (BSP) has revised its 2020 inflation forecast down to 2% from 2.2% due to the prolonged COVID-19 lockdown, falling global crude prices, and subdued economic activity.
The inflation forecast for 2021 was slightly adjusted upward to 2.45% from 2.4%, attributed to a projected strong domestic recovery and increased liquidity.
BSP Governor Benjamin Diokno anticipates a U-shaped economic recovery for the Philippines in 2021, with a projected GDP contraction of 0.2% in 2020 followed by a 7.7% rebound.
This recovery projection for 2021 is contingent on the containment of the pandemic in the latter half of 2020.
However, economists and analysts forecast higher inflation rates of 2.9% for 2020 and 3% for 2021, compared to the BSP's projections.
Downside risks to the inflation outlook include declining global crude oil prices, muted economic activity, and a potential appreciation of the peso against the US dollar.
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The Bangko Sentral ng Pilipinas (BSP) forecasts the inflation rate for April 2020 to be between 1.9% and 2.7%.
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The Bangko Sentral ng Pilipinas (BSP) anticipates that inflation will remain low in the coming months due to weak domestic demand and declining global oil prices, although temporary price spikes might occur because of supply chain disruptions.
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The Philippine economy is projected to experience its first annual contraction in over two decades in 2020 due to the coronavirus outbreak, according to the central bank governor.
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