COVID-19 outbreak to hurt PH economy in Q1

The COVID-19 outbreak is expected to impede the Philippine economy's growth potential in the first quarter due to a significant decline in tourist arrivals, particularly from China.

Capital Economics noted that while the Philippines is relatively insulated compared to other regional economies, its tourism sector will suffer considerably.

Prior to the outbreak, tourist arrivals from China had shown strong growth.

The Philippines has imposed a travel ban on China and its special administrative regions, Hong Kong and Macau.

South Korea, the Philippines' top source of tourists, is also experiencing a surge in COVID-19 cases, leading the DFA to advise against nonessential travel to the country.

The government has set an economic growth target of 6.5-7.5 percent for the current year.

Last year, the Philippines' GDP growth was at an eight-year low of 5.9 percent, largely attributed to underspending by the government due to delays in the approval of the 2019 national budget.