In a research note, Fitch Solutions said it cut its 2019 growth projection on the Philippine economy to 5.9% from 6.1% previously. Fitch Solutions said the weak external backdrop will prove a drag on domestic growth, owing to ongoing US-China trade tensions and slowing global growth. For 2020, Fitch Solutions said the Philippine economy will likely rebound “modestly” at 6.3% — which was lower than the Fitch unit’s previous estimate. “Despite the still-positive domestic consumption outlook, slowing global growth and persistent Sino-American trade tensions will continue to weigh on growth over the coming quarters,” Fitch Solutions said. “However, increased trade tensions between the US and China has had a ripple effect across the Asia region, weakening demand across the supply chain and dampening business confidence in H119,” it continued.

Source: Philippine Star May 22, 2019 07:44 UTC