ANZ Research adjusted downward its estimate for Philippine gross domestic product (GDP) this year as it highlighted an all-around deterioration of growth in the second quarter. “We forecast 2020 GDP to decline by 2.5 percent year-on-year, reflecting the sizeable headwinds to growth,” it said in a report released on Monday. If correct, the forecast would fall within the government’s revised assumption of 2.0 to 3.4 percent contraction for 2020 and the 6-percent GDP growth in 2019. ANZ Research stressed that household consumption has likely collapsed with contractions in both discretionary and nondiscretionary consumption. “Remittances from abroad, which have in the past acted to cushion from the effect of domestic shocks, are also vulnerable,” ANZ Research also said.

Source: Manila Times June 22, 2020 17:26 UTC