Widest output gap in Asean to scar Philippine labour market

MANILA (Philippine Daily Inquirer/Asia News Network): The Philippines’ output gap — its actual economic output during the Covid-19 crisis versus its maximum prepandemic potential — is the highest in Association of South-East Asian Nations (Asean) which, in turn, is resulting in labour market scarring, the Asian Development Bank (ADB) said on Wednesday (March 16).

Estimates presented by ADB South-East Asia department senior economist James Villafuerte in a press briefing showed that despite the better-than-expected 5.6-per cent gross domestic product (GDP) growth posted by the Philippines last year, its actual output was 15.7 per cent below what would have been the GDP figure without the pandemic.