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PHL economy will struggle to recover — Fitch Solutions
Fitch Solutions has reduced its economic growth projections for the Philippines for 2021 and 2022 due to the country's struggles in controlling the COVID-19 pandemic and its vaccination rollout.
The firm now forecasts the Philippines' GDP to grow by 5.3 percent in 2021, a decrease from its previous estimate of 5.8 percent.
For 2022, Fitch Solutions has also lowered its GDP growth forecast to 6.5 percent from the earlier projection of 8.2 percent.
The report indicates that the country's economic output is expected to be 11.5 percent below its pre-pandemic trend by 2025.
Fitch Solutions highlighted that the reimposition of lockdowns in March, following a surge in COVID-19 cases, has stalled economic recovery.
The firm emphasized the Philippines' high vulnerability to lockdowns due to its strong reliance on domestic economic activity for growth.
Despite the impact of lockdowns, the Philippines is experiencing its most severe outbreak to date, suggesting the continuation of strict restrictions.
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See how different news organizations are covering this story. Below are the original articles from various Philippine news sources that contributed to this summary.
The Philippine economy contracted by 4.2% in the first quarter of 2021, marking its fifth consecutive quarter of decline and the longest recession since the Marcos era.
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The Department of Finance (DoF) observes signs of economic recovery in the Philippines, despite ongoing risks posed by the COVID-19 virus.
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The Development Budget Coordination Committee (DBCC) has lowered the Philippines' GDP growth target for 2021 from 6.5-7.5 percent to 6-7 percent due to stricter enhanced community quarantine (ECQ) in the NCR Plus bubble and the rise of COVID-19 variants.
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