IMF cuts PH growth forecast to 0.6% for 2020

The IMF has cut its growth forecast for the Philippines in 2020 to 0.6% due to the impact of the COVID-19 pandemic.

This projection is significantly lower than the previous estimate of 6.3%, reflecting supply disruptions and weaker demand from major trading partners.

Despite the economic downturn, the IMF forecasts a recovery with an expected growth rate of 7.6% in 2021.

The report also projects that unemployment will rise to 6.2% this year before falling to 5.3% next year.

Inflation is expected to ease to 1.7% this year but could rise to 2.9% next year, while the current account deficit is projected to widen to 2.3% of GDP.