BSP Forecasts U-Shaped Recovery for Philippine Economy in 2021

The Bangko Sentral ng Pilipinas (BSP) forecasts a U-shaped recovery for the Philippine economy in 2021 following the impact of the coronavirus pandemic.

Monetary officials expect the services sector, including tourism and trade, to be severely affected by the global outbreak.

On Thursday, the BSP cut its key policy rates by 50 basis points and relaxed regulations on compliance reporting by banks to provide liquidity support.

Economists from BPI and ING Bank Manila praised the monetary measures but called for additional fiscal stimulus to address the economic impact of the enhanced community quarantine in Luzon.