The Asian Development Bank has downgraded its economic forecast for the Philippines this year, expecting it to shrink further still due to the impact of the COVID-19 pandemic on consumption and investments.
In its recent Asian Development Outlook update, the Manila-based multilateral lender said it expects the Philippines’ gross domestic product for 2020 to contract by 8.5% “because household consumption and investment have fallen more than expected.”
The ADB’s latest projection for the Philippine economy is a downward revision from its minus 7.3% forecast last September.
Its forecast is in line with Duterte administration’s economic managers’ revised outlook of minus 8.5 to minus 9.5% for this year due to “prolonged imposition of community quarantines in various regions in the country.”
The Manila-based lender’s assumption is slightly lower than the World Bank’s minus 8.1% outlook for the Philippines this year.