In Southeast Asia, Cambodia and Thailand will have bigger reductions in gross domestic product this year on the back of the slump in global tourism as international borders mostly remained closed to avoid the virus from further spreading, according to the Asian Development Bank.
Next year, the ADB’s estimates showed the Philippines’ GDP would suffer from a 10-percent reduction—the biggest in the region due to weak domestic demand. The impact of a tourism slump and other global spillovers to domestic GDP was seen to be relatively smaller.
In terms of sectors, expected to incur larger losses during the next two years in the Philippines were business, trade, personal and public services, manufacturing, utilities and construction.
The government has been gradually opening up the economy to resume consumer and business confidence. Private-sector and household consumption accounted for about three-fourths of the Philippine economy.