Japan-based investment bank Nomura on Monday cut anew its 2020 Philippine gross domestic product (GDP) growth forecast as lower remittances and the surge in the unemployment rate will likely continue to exact its toll on the economy. In a report, Nomura said the Philippine economy is projected to contract by as much 6.6 percent this year, worse than its -4.8 percent earlier projection. “We revise down further our 2020 GDP growth forecast to -6.6 percent from -4.8 following the plunge in Q2 (second quarter) GDP growth to -16.5 percent,” said Nomura economist Euben Paracuelles. Household final consumption expenditure contracted by 15.5 percent in the second quarter while remittances declined by 19.2 percent in May. Recovery can come quickly once consumer confidence returns, factories fired up, construction activity, particularly the BBB [Build, Build, Build] Program, is ramped up, and transportation is fully restored,” said Diokno.

Source: Manila Times August 10, 2020 17:48 UTC