IMF cuts PH growth forecast to 3.2%

The International Monetary Fund (IMF) has cut its Philippine economic growth forecast for 2021 to 3.2%, down from the previous projection of 5.4%.

This revised outlook is below both the government's target range of 4-5% and reflects the impact of a surge in COVID-19 cases leading to stricter lockdown measures.

IMF cited slower recovery due to a third wave of infections starting in August, increasing economic uncertainty.

Philippine GDP contracted by 9.6% last year; it grew 11.8% in Q2 2021 but this was largely due to low base effects from the previous year's contraction.