ADB forecasts PH GDP to drop by 3.8 percent

The Asian Development Bank (ADB) has revised its economic outlook for the Philippines, projecting a GDP decline of 3.8% this year due to the impact of the COVID-19 pandemic.

This forecast is more pessimistic than the bank's April estimate of 2% growth and falls within the government’s projection range of 2-3.4% contraction.

The ADB attributes the revised forecast to slower-than-expected household consumption and investment, as well as continued global economic contraction affecting external trade, tourism, and remittances.