ADB downgrades further economic forecast for Philippines in 2020

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.


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