Fitch Solutions Macro Research, a unit of Fitch Group, said Tuesday it reduced the 2020 growth forecast for the Philippines to 6 percent from the 6.3-percent estimate it made earlier because of the impact of the coronavirus disease 2019.
“The exports sector, specifically tourism, is likely to see intense headwinds from the outbreak, while infrastructure projects could face delays and households receive weaker remittance inflows,” it said in a report.
“As such, we at Fitch Solutions have lowered our real GDP growth forecast to 6 percent in 2020, from 6.3 percent previously, which despite our revision, still reflects our view for a slight pick-up from 5.9 percent in 2019,” it said.
Fitch Solutions said the major risk to its view would be a sudden surge in the number of domestic cases in the Philippines or a more prolonged impact on external demand.
Fitch Ratings and Fitch Solutions Macro Research are two separate and distinct divisions within Fitch Group. Each business produces its own independent research and commentary with different methodologies, audiences and products.