Fitch Solutions cuts PH growth forecast to 6% due to COVID-19

Fitch Solutions has downgraded its outlook for the Philippine economy this year, predicting growth to be 6% rather than the previously forecasted 6.3%, citing impacts from the COVID-19 outbreak.

The revised prediction reflects challenges in exports, tourism, infrastructure projects, and household remittances due to the pandemic.

This new forecast is below the government's target range of 6.5% to 7.5%, marking a third consecutive year of underperformance if realized.

Fitch Solutions warns that export sectors will face significant challenges, with potential delays in infrastructure projects and reduced remittance inflows.

The think tank noted that fiscal stimulus could contribute significantly to growth, but a sudden surge in domestic cases or prolonged impact on external demand remains a major risk.

ING Philippines economist Nicholas Mapa suggests the government should flex both its fiscal and monetary muscle to shield the economy from impending slowdowns caused by COVID-19.