HSBC: PH GDP to contract 3.9%, rebound to 7% next year

British banking giant HSBC predicts the Philippine GDP will contract by 3.9% in 2020 due to the pandemic and lockdown measures.

Despite recent easing of restrictions in Metro Manila, economic activities remain constrained.

HSBC expects a rebound to 7% growth in 2021 as normalcy gradually returns.

The bank also forecasts another 25 basis points cut in BSP key rates and a 200-basis points reduction in RRR by year-end to boost liquidity and support economic recovery.

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