Philippines facing deep and prolonged weakness, says ANZ

MANILA - ANZ Bank has revised its Philippine 2020 GDP growth forecast downwards by 6.6% to minus-9.1% year-on-year.  Apart from the Philippines economic performance for the first half, ANZ says its downbeat assessment is based on four key considerations: (a) the re-imposition of social containment policies; (b) falling remittances; (c) slow fiscal response; and (d) diminished transmission of monetary accommodation.

"For 2021, we forecast Philippine growth to rise by 8.4% y/y -- (but) this recovery will still lead to a negative output gap, ANZ says in a research report.

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