MOODY’S Analytics has expressed concern at the current state of the Philippine economy, saying that the country’s growth prospects this year are facing significant downside risks.
“The Philippine economy is in a worrisome state. Elevated inflation, a large output gap, a recent resurgence of Covid-19 (coronavirus disease 2019) infections, and limited vaccine availability are all reasons for concern,” it said in a report released on Friday.
The research arm of credit ratings agency Moody’s Investors Service added that its 6.3 percent growth estimate for the Philippine economy “has significant downside risks at this stage.”
“The government is opposed to national lockdowns, but the recent spike in local infections means that the economic recovery could easily be further stalled at least through the first half of 2021,” it stressed.
Moody’s Analytics’ growth estimate is lower than the government’s official forecast range of 6.5 to 7.5 percent, but a turnaround of the economy’s 9.5-percent contraction last year.