Philippine GDP seen contracting 3.5-4% in 2020

The Philippine economy is projected to contract by 3.5 to 4 percent in 2020, the fastest pace in 35 years.

Finance Secretary Carlos G. Dominguez III stated that despite this contraction, the country is expected to experience a significant recovery next year.

Dominguez attributed the fiscal resilience to the Duterte administration's tax reform program and prudent borrowing practices, which provided necessary financial resources to address health and socioeconomic crises caused by COVID-19.

He emphasized the importance of maintaining reserves for potential future waves of the pandemic.