Moody’s Investors Service trimmed its growth estimate for the Philippine economy this year after taking into account the deep recession in the first half and its less-than-robust outlook for the rest of 2020. The Philippines fell into a technical recession after domestic output shrank by a record 16.5 percent in the second quarter and 0.7 percent in the first. To contain the spread of the coronavirus disease 2019 (Covid-19) in the country, the government has imposed different forms of community quarantine in various cities and provinces since March 17. “A sharp deterioration in labor-market conditions and faltering remittance inflows [have] weighed on consumer sentiment and spending,“ Moody’s said. The nonseasonally adjusted unemployment rate in the country picked up to a record-high 17.7 percent in the second quarter from 5.3 percent in the first.

Source: Manila Times September 03, 2020 16:18 UTC