As the COVID-19 disease wreaks havoc on markets worldwide, debt watcher Moody’s Investors Service again cut its 2020 growth forecast for the Philippines to 5.4 percent.
Moody’s updated gross domestic product growth projection was lower than the 6.1 percent projection last February, a figure already downscaled as a result of COVID-19. The new projection was in Moody’s Asia-Pacific Report released on Tuesday.
The new forecast slid under not only the government’s 6.5 to 7.5 percent target but also 2019’s eight-year low growth of 5.9 percent.
The new growth projections for the Philippines and the rest of the region assumed “declining consumption levels and continuing disruptions to production and supply chains” and recovery by the second half of 2020.
Data showed that the Philippines’ general government foreign currency debt as a share of gross debt stood below 40 percent in 2019.