Economy slipping into recession this year expected —Palace

The government has already projected that the Philippine economy could slip into recession this year due to the COVID-19 pandemic, Malacañang said on Tuesday.

Fitch Solutions Country Risk and Industry Research has downgraded further its outlook on the Philippine economy, with the country now widely expected to fall into recession, which means two straight quarters of contraction.

In a commentary released on Monday, Fitch Solutions said it now expects full-year growth at -0.2% in 2020, lower than the already downward revised 0.5% outlook earlier in May.

“Iyan naman po ay inaasahan dahil nagsarado nga tayo ng dalawang buwan at ngayon may mga areas pa na mananatiling sarado,” presidential spokesperson Harry Roque said in a televised briefing in response to Fitch's assessment.

To stimulate growth, Roque said the government will rely on the Build, Build, Build infrastructure program, monetary policy and state spending.

“Bababa po talaga ang ating ekonomiya, pero tayo po ay tataas naman at inaasahan natin na mabilis ang ating pag-recover matapos po itong mga quarantines,” he said.

Last week, the Philippines reported a 0.2% contraction in the first quarter of the year, which the government attributed to the eruption of the Taal Volcano, decline in tourism and trade due to COVID-19, and the enhanced community quarantine meant to curb the spread of the virus.

Latest projections of the administration indicate that economic growth could range from -0.8% to 0% this year. —LDF, GMA News