Moody’s cuts PH growth forecast to 5.4%

Debt watcher Moody's Investors Service has lowered its 2020 economic growth forecast for the Philippines to 5.4%, citing the impact of the Luzon lockdown and rising COVID-19 cases.

This projection is lower than the previous estimate of 6.1% from February, which was already a reduction due to the pandemic.

The new forecast falls below both the government's target range of 6.5% to 7.5% and last year's growth rate of 5.9%. Moody’s expects consumption levels to decline and disruptions to production and supply chains to continue, with recovery anticipated in the second half of 2020.

Moody's warns that prolonged disruptions could lead to a global recession.