Philippine economy may contract up to 0.6% this year

The Philippine economy may contract by up to 0.6% this year due to the coronavirus pandemic, according to NEDA.

Socioeconomic Planning Secretary Ernesto M. Pernia said economic growth could slow to 4.3%, while Fitch Solutions and S&P Global Ratings have downgraded their forecasts to 4% and 4.2% respectively.

Fitch Solutions cited quarantine measures as the most significant drag on growth, with supply-chain disruptions, weaker remittances, and reduced tourism also contributing to slower economic expansion.