Economy to do better than -8% prediction, says Finance Ministry

The economy is set to close the year with activity levels higher than measured in the second advance estimate of GDP, the Finance Ministry said Friday. The National Statistical Office, in its second advance estimate last week, projected an 8 per cent contraction for FY21, as against 7.7 per cent assumed earlier.

In its report for February, the Department of Economic Affairs said economic activities have gathered pace, with mild stiffening of the Covid curve failing to deter a steady uptick in consumer sentiment that has been bolstered by the inoculation drive. Nevertheless, it conceded that a “major downside risk to growth continues to be the pandemic-induced morbidity … that has elevated health stimulus as a key macroeconomic lever for continued recovery”.