Moody's projects 3.1% PH economy contraction

The Philippine economy is projected to contract by as much as 3.1% this year, a worsening estimate from Moody's Analytics.

This contraction is attributed to prolonged and strict COVID-19 lockdowns, among the longest and most stringent globally.

The Philippines is expected to lag behind its Asia-Pacific peers in economic recovery.

The new forecast considers the extension of various lockdown levels, causing longer-than-expected economic disruptions.

A very sharp drop in exports, down by over 35% on a year-to-year basis as of May, further aggravates the situation.

This export downturn is the sharpest in the Asia-Pacific region, matched only by India's.