DoF sees economic recovery signs amid COVID-19 risks

The Department of Finance (DoF) observes signs of economic recovery in the Philippines, despite ongoing risks posed by the COVID-19 virus.

First-quarter gross domestic product (GDP) data shows a slight improvement, with a 0.26% rise compared to the previous quarter.

The pace of economic contraction in the first three-months of the year had softened compared with the previous-quarter, an indication of recovery, but the DOF is not yet ready to call that the Philippines is nearing the end of the coronavirus crisis.

The country's GDP dipped 4.2 percent in January to March, which is worse than the 0.73 percent contraction in the same period last year, but an improvement from minus 8.26 percent in the final three-months of 2020.

Finance Undersecretary Gil S. Beltran highlighted that the virus remains a threat to the economic outlook, emphasizing the importance of effectively addressing the health issue.

It is encouraging that the much-needed vaccines have started arriving, with the Philippines expecting its total vaccine inventory to hit over 21 million doses next month.

Finance Secretary Carlos G. Dominguez III mentioned that an additional P75 billion might be needed until 2022 to fund an expanded vaccination program, which includes booster shots and inoculations for teenagers and adults.

However, data from the Center for Strategic & International Studies indicates that the Philippines has fully vaccinated only 0.5% of its population, placing it among the laggards in the region.