Fitch Solutions downgrades Philippine economic growth outlook

Fitch Solutions Country Risk and Industry Research has downgraded its outlook on the Philippine economy this year, saying growth is set to rebound more modestly than earlier expected.

In a commentary sent to reporters on Tuesday, Fitch Solutions said it now expects economic growth at 6.0% this year versus the earlier forecast of 6.3%.

"The Philippines is set to pick up more modestly in 2020 than we had initially anticipated, owing to the impact of the COVID-19 outbreak," the commentary read.

The latest forecast still falls below the government target of 6.5% to 7.5%, and would be the third consecutive year that the Philippines has failed to meet its goal if it happens.

"The exports sector, specifically tourism, is likely to see intense headwinds from the outbreak, while infrastructure projects could face delays, and households receive weaker remittance inflows," said Fitch Solutions.

"The major risk to our view is a sudden surge in the number of domestic cases in the Philippines or a more prolonged impact on external demand," the report added.

There have been three confirmed cases of the new coronavirus disease in the Philippines so far, with one fatality. — BM, GMA News