BSP: Second virus wave may deepen contraction

Philippine economy may face a deeper contraction if a second or third wave of coronavirus infections emerges, BSP Governor Benjamin Diokno said.

Diokno emphasized that recovery and preventing another wave depends on public behavior.

The DBCC has revised its growth target for this year from zero to -0.8 percent to a contraction of between 2 percent to 3.4 percent due to the pandemic's impact.

With most parts of the country under GCQ, Diokno remains optimistic unless there is a serious second or third wave.

The BSP and national government have implemented measures to address economic impacts, with the banking industry remaining well-capitalized and having high asset quality.