Moody's lowers PH economic growth forecast
Published Mar 18, 2020 12:00 am
By Chino Leyco
Debt-watcher Moody’s Investors Service slashed its economic growth forecast for the Philippines as growing impact of the coronavirus disease (COVID-19) continue to mount across the country.
Moody's / Manila Bulletin
In a Moody’s research note released yesterday, one of the three major international credit rating agencies said that the Philippine gross domestic product (GDP) may grow by 5.4 percent this year, lower than its earlier projection of 6.1 percent.
Christian de Guzman, Moody’s senior vice-president, said the significant cut in GDP growth forecast
is attributable to their assumption that consumption levels will continue to decline during the COVID19 pandemic.
De Guzman also said that disruptions to production and supply chains are expected until June this year.
“In the short run, this is playing out as both negative supply and demand shocks, and the longer the disruptions last, the greater the risk of a global recession,” de Guzman said.
But de Guzman, however, said that the government is expected to launch economic stimulus measures to cushion the impact of the COVID-19 once the fallout becomes clearer.
On Monday, Finance SecretaryCarlos G. Dominguez III said that the government has readied a ₱27.1 billion stimulus package to counter the impact of the coronavirus-induced economic slowdown.
Dominguez said that the package is just an initial under the government’s assumption that the contagion will end shortly after June this year.
Of that amount, the tourism sector would get ₱14 billion.
Dominguez said that tourism received bulk of the amount because the sector is currently the most affected.
“Other measures will be considered together with the private sector as the effects of the contagion
become more evident,” Dominguez told reporters in a mobile phone message.
The finance chief also disclosed that the government is also negotiating for $1 billion with loans for combating COVID-19.
“ still in process. I will let you know when successfully concluded,” Dominguez assured.
Socioeconomic Planning Secretary Ernesto M. Pernia said the one-month community quarantine of Metro Manila may have a transitory impact on the economy, but needs to be closely monitored for necessary adjustments.
He emphasized that the protocols already put in place are meant to safeguard the health and wellbeing of the people while mitigating the impact of COVID-19 through the various response measures of the government.
Moreover, the movement of goods and trade will remain unhindered, Pernia said.
Moody's / Manila Bulletin
In a Moody’s research note released yesterday, one of the three major international credit rating agencies said that the Philippine gross domestic product (GDP) may grow by 5.4 percent this year, lower than its earlier projection of 6.1 percent.
Christian de Guzman, Moody’s senior vice-president, said the significant cut in GDP growth forecast
is attributable to their assumption that consumption levels will continue to decline during the COVID19 pandemic.
De Guzman also said that disruptions to production and supply chains are expected until June this year.
“In the short run, this is playing out as both negative supply and demand shocks, and the longer the disruptions last, the greater the risk of a global recession,” de Guzman said.
But de Guzman, however, said that the government is expected to launch economic stimulus measures to cushion the impact of the COVID-19 once the fallout becomes clearer.
On Monday, Finance SecretaryCarlos G. Dominguez III said that the government has readied a ₱27.1 billion stimulus package to counter the impact of the coronavirus-induced economic slowdown.
Dominguez said that the package is just an initial under the government’s assumption that the contagion will end shortly after June this year.
Of that amount, the tourism sector would get ₱14 billion.
Dominguez said that tourism received bulk of the amount because the sector is currently the most affected.
“Other measures will be considered together with the private sector as the effects of the contagion
become more evident,” Dominguez told reporters in a mobile phone message.
The finance chief also disclosed that the government is also negotiating for $1 billion with loans for combating COVID-19.
“ still in process. I will let you know when successfully concluded,” Dominguez assured.
Socioeconomic Planning Secretary Ernesto M. Pernia said the one-month community quarantine of Metro Manila may have a transitory impact on the economy, but needs to be closely monitored for necessary adjustments.
He emphasized that the protocols already put in place are meant to safeguard the health and wellbeing of the people while mitigating the impact of COVID-19 through the various response measures of the government.
Moreover, the movement of goods and trade will remain unhindered, Pernia said.