MANILA – Moody’s Analytics forecasts a -6 percent output for the Philippine economy for the third quarter of 2020, an improvement from the -16.5 percent print it registered in the previous quarter.
In its Asia Pacific Economic Preview for the week covering November 9-13, released Monday, the economic research subsidiary of Moody’s Corporation said the increase of coronavirus disease (Covid-19) cases in the third quarter this year resulted in “necessitating the extension of conditional restrictions.”
“The surge in domestic cases is expected to have dampened the revival in domestic demand, giving rise to another quarter of contraction,” the report read.
The government re-implemented for 15 days the modified enhanced community quarantine, second strictest movement restriction, starting Aug. 4 in the National Capital Region and the provinces of Laguna, Rizal, Cavite and Bulacan to help address the rising Covid-19 infections.
As of July, economic managers forecast a 5.5 percent economic contraction, as measured by gross domestic product, this 2020.
Finance Secretary Carlos Dominguez IIII earlier said the re-implementation of the MECQ last August may further hurt the economy hence, he forecasts full-year GDP to be around -6 percent this year.
The Philippine Statistics Authority is scheduled to report the third quarter output on Nov. 10.
Authorities and economists alike forecast better figures for the third quarter after citing the improvements of several gauges like exports due primarily to the continued re-opening of the economy.