World Bank Projects Philippine Economy to Shrink by 1.9% in 2020

The World Bank projects the Philippine economy to shrink by 1.9% in 2020 due to the coronavirus pandemic and natural disasters.

Private consumption growth fell to 0.2% in Q1 2020, with the hotel and restaurant industry contracting by 15.4%. The report estimates that 1.2 million Filipinos may fall into poverty this year.

The World Bank forecasts a gradual economic recovery starting in late 2020, with growth expected to return above 6% in 2021 and 7% in 2022.

To accelerate recovery, the report recommends improving digital infrastructure for reliable internet access and creating an enabling policy environment for a competitive broadband market.