Barcelona-based think tank FocusEconomics expects a slower recovery for the Philippines as the coronavirus pandemic-induced recession stretched for the fifth straight quarter with a worse-than-expected gross domestic product contraction of 4.2 percent in the first quarter.
Alex Petropoulos, junior economist at FocusEconomics, said the think tank has lowered its 2021 GDP growth projection for the Philippines to 6.8 percent from the original forecast of 7.3 percent.
Petropoulos said the GDP contraction in the first quarter was slower than the 8.3 percent recorded in the fourth quarter last year, but was worse than market expectations for the country.
The Philippines slipped into recession with a record 9.6 percent GDP contraction last year.
Economic managers, through the Development Budget Coordination Committee, slashed the GDP growth targets for this year and next year amid the resurgence in COVID-19 infections.