Pernia: PH GDP growth at risk of 1 ppt cut if COVID-19 persists

The Philippine economy could see up to a 1 percentage point reduction in GDP growth if the COVID-19 outbreak persists until the end of the year, according to Socioeconomic Planning Secretary Ernesto M. Pernia.

Pernia noted that if the virus is contained by June, the impact on GDP would be a 0.3 percentage point reduction; however, extended disruption could result in a full 1 percentage point loss.

The NEDA chief highlighted that the assessments are based on scenarios where inbound Chinese tourists drop to zero and foreign tourist arrivals decrease by 10%, with significant trade disruptions affecting manufacturing supply chains.