DBCC reduces GDP target growth rate to 6-7%

The Development Budget Coordination Committee (DBCC) on Wednesday (May 19) reduced the country’s targeted gross domestic product (GDP) growth rate due to the discovery of new variants and the spikes of COVID-19 cases in the country.

The previous estimated GDP growth rate for 2021 was 6.5% to 7.5%. The economic team adjusted it to 6% to 7% due to the emergence of new variants and high number of COVID-19 cases. The economic team said the Philippines needs a growth rate of 7% to 9% by 2022 to achieve pre-pandemic levels, while 6% to 7% is targeted for 2023 to 2024.

Meanwhile, Department of Budget and Management (DBM) Secretary and DBCC Chairperson Wendel Avisado identified three ways to aid economic recovery.

First, the strict implementation of the Prevent, Detect, Isolate, Treat, and Recover (PDITR) strategy is needed, as well as the full COVID-19 vaccination of residents in high-risk areas. 

Second, the gap between COVID-19 detection and patient isolation must be reduced from seven days to five days to stop the spread of infection. The COVID-19 cases in the country are expected to be cut in half through these methods.

Lastly, Avisado said the ₱170 billion fund for social protection must be distributed to support individuals gravely affected by the COVID-19 pandemic.

 “It depends very much on the speed of the vaccination and where we target the areas in the highest risk, and that is what we are going to propose,” National Economic and Development Authority Secretary Karl Chua said.

Report from Naomi Tiburcio/NGS-jlo

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