Philippine economy seen to slow to 5.8% due to coronavirus

Philippine economic growth is projected to slow to around 5.8% this year from 5.9% in 2019 due to the impact of the new coronavirus outbreak.

The UnionBank ERU report highlights risks such as reduced tourist arrivals, exports, and imports from China.

Chinese tourists were the second-largest visitor group in 2018, contributing around 12.7% of tourism revenues.

Socioeconomic Planning Secretary Ernesto Pernia remains optimistic that domestic consumption and public infrastructure spending will help offset the expected decline in inbound tourist arrivals.

Pernia noted that if the virus persists longer, it could also weaken global economic growth and curtail exports to China, particularly electronics.