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BSP expects recovery this year

Published May 13, 2021, 3:00 PM With CREATE, FIST laws  The Bangko Sentral ng Pilipinas (BSP) expects the economy to post positive growth in the second quarter due to base effects, but whether or not this will be sustained for the rest of the year will depend on the implementation of recently approved laws, such as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) and the Financial Institutions Strategic Transfer (FIST) Act.  BSP Deputy Governor Francisco G. Dakila Jr. of the monetary and economics sector, said the growth trajectory will turn positive beginning in the second quarter of the year, but to fully support a recovery that is sustainable, it will have to be supported by the implementation of key pieces of legislation including the CREATE and FIST laws – “which will then impact on growth starting in the second half of the year and well into 2022”. The stronger recovery in global economic activity will also contribute to this economic recovery. 

BSP optimistic Philippines will report positive economic growth in Q2

BSP optimistic Philippines will report positive economic growth in Q2 By JON VIKTOR D. CABUENAS, GMA News Published May 12, 2021 6:27pm The Philippine economic growth will likely return to positive territory in the second quarter of the year given the base effects in 2020, the Bangko Sentral ng Pilipinas (BSP) said Wednesday. In a virtual briefing, BSP Deputy Governor Francisco Dakila, Jr. said the economy will likely be supported by key measures which were recently passed by the government. As to the trajectory of growth, we expect this to turn positive beginning the second quarter of the year, again, mostly due to the positive base effects, he explained.

Fitch Solutions cuts Philippines growth outlook to 5 3%

Fitch Solutions cuts Philippines growth outlook to 5.3% Lawrence Agcaoili © Boy Santos, file Fitch Solutions cuts Philippines growth outlook to 5.3% MANILA, Philippines Fitch Solutions Country Risk & Industry Research expects a slower economic recovery for the Philippines in the next two years as the country continues to struggle to control the resurgence of COVID-19 infections. In its latest commentary titled “Philippines’ 2021 recovery hampered by the pandemic,” Fitch Solutions said it has slashed the gross domestic product (GDP) growth for the Philippines to 5.3 percent from the original target of 5.8 percent this year and to 6.5 percent next year. The research arm of the Fitch Group expects the COVID-19 pandemic to have a lasting effect as it would continue to disrupt economic activity – at least through the first half of 2022.

DBCC to revisit economic, fiscal targets

Published May 12, 2021, 6:05 PM The Duterte administration will revisit its medium-term macroeconomic targets and fiscal program next week following a worse-than-expected economic performance in the first-quarter. In a media advisory released by the Department of Budget and Management (DBM), it said the inter-agency Development Budget Coordination Committee (DBCC) will hold its 179th meeting on Tuesday, May 18, 2021. The DBCC, which the DBM chairs, will release “revised” medium-term macroeconomic assumptions and fiscal program after the meeting, the advisory stated. The inter-agency body, which sets the macroeconomic targets of the country, is made up of the DBM, Department of Finance (DOF), and the National Economic and Development Authority (NEDA).

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