BFBCI SEES LIGHT AT THE END OF THE PANDEMIC TUNNEL
After more than two years of lockdown or quarantine, there seems to be light at the end of the tunnel. News reports boast of an 11.8% GDP growth in the second quarter, the first time GDP increased after 5 quarters of decline.
The huge increase; however, can be misleading as it is due to what economists call “the base effect”, where the latest figure is compared to a very low figure the previous year. Last year’s second quarter figure shows a massive drop of 17%, which plunged the country into recession. This year’s second quarter large increase could very well signal the end of the recession.
But then, we are in an enhanced lockdown again. And the Delta variant seems to be on a rampage world-wide.
Nevertheless. NEDA Secretary Karl Chua said, “The significant improvement in almost all economic indicators highlighted gains from our risk-based approach to quarantines and our strong economic fundamentals.”
BFBCI is optimistic that we are finally seeing light at the end of this pandemic tunnel.