IMF sees PH economy shrinking by 3.6% this year

The International Monetary Fund (IMF) has downgraded its economic forecast for the Philippine economy, projecting a 3.6% contraction this year due to supply disruptions and weaker demand from trading partners.

This projection is significantly lower than the IMF's previous estimate of 0.6% growth in April and the government's projection of a -2% to -3.4% decline.

IMF resident representative Yongzheng Yang attributed the revision to larger-than-expected supply disruptions related to COVID-19 and weaker demand from major trading partners.

Despite the bleak outlook for 2020, the IMF projects a recovery with a 6.8% growth rate in 2021.