Years of underinvestment to cap Phl recovery - ING

Dutch financial giant ING has warned that underinvestment over the past years could prolong the scarring impact of the COVID-19 pandemic on the Philippine economy.

- LAWRENCE AGCAOILI

ING senior economist Nicholas Mapa said the lack of investment outlays amid the strong rebound from the impact of the global health crisis could put a drag on the recovery.

“The lack of investment outlays even during this current rebound will unfortunately act as a cap on the overall growth outlook to come,” he said.

Underinvestment will likely continue as Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. signaled a higher for longer interest rate environment and even another possible rate hike, the economist said.

“With the BSP governor warning that the brunt of the impact from rate hikes has yet to come, we can expect underinvestment to continue for a bit longer,” Mapa said.