On growth, we expect real gross domestic product (GDP) to swing from a range of negative 7.0 to negative 9.0 percent this year, to a range of positive 6.5 to 7.5 percent next year and in 2022. We anticipate interest rates to remain low, inflation to be manageable, the peso to be stable, and external accounts to be robust, with record-high gross international reserves.
We expect inflation to remain manageable at a range of 1.75 to 2.75 percent this year, and within the 2.0-4.0 percent target range by next year and in 2022. Headline inflation averaged 2.5 percent from January to October 2020, still within the Government’s target range for the year. The strength of the Philippine Peso remains market-driven and supported by sound macroeconomic fundamentals.