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Economy may contract this year: NEDA
The National Economic and Development Authority (NEDA) forecasts the Philippine economy could contract by as much as 0.6% in 2020 due to the fallout from the COVID-19 pandemic.
This contraction is attributed to the impact on tourism, trade, remittances, and consumption, exacerbated by the Luzon-wide lockdown.
NEDA estimates a potential GDP growth reduction to between -0.6% and 4.3% for the year, depending on mitigating measures.
A contraction would mark the first for the Philippine economy since 1998, when it recorded -0.6% growth.
Capital Economics had previously projected a slowdown in GDP growth to 4.7 percent in the first quarter, with contractions of 3 percent in the second quarter and 1.1 percent in the third quarter, and a slight recovery in the fourth quarter.
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