Philippines: Heading towards a sharper contraction – Standard Chartered

Economists at Standard Chartered Bank lowered the Philippines 2020 GDP growth forecast to -5.1% y/y from -2.3%, after the contraction in Q1, the first ever. USD/PHP is sitting at 50.2805.

Key quotes

“We lower our 2020 growth forecast for the Philippines to -5.1% y/y (-2.3% y/y previously) after disappointing Q1 growth data.” 

“Q2 is likely to see the worst contraction; we forecast -13% y/y, before a modest rebound in H2.”

“We lower our 2020 inflation forecast modestly to 1.6% (from 1.8%) on account of likely slower domestic activity.”