Connect with us

Hi, what are you looking for?


PHL recovery to lag Asia Pacific

ASIA-PACIFIC economies will likely lead the global recovery in 2021, with the Philippines viewed as a laggard due to the outsized impact of the coronavirus on the economy, according to Moody’s Analytics.

In a note issued Thursday, Steven Cochrane, Chief Asia-Pacific Economist at Moody’s Analytics, said the Philippines and India will have the “deepest holes to climb out of” in the region due to the extent of the damage done to their economies.

“The daily number of cases in the Philippines has come down from its peak in mid-August but has remained stable at a still uncomfortable level over 1,000 per day. So renewed investment into the Philippines likely will be delayed until there is further control and quarantines are eliminated or at least minimized,” Mr. Cochrane said in an e-mail to BusinessWorld.

Earlier this month, Moody’s Analytics revised its growth outlook for the Philippines to 6.2% from 7.8% to reflect a slower recovery due to the smaller-than-expected fiscal response to the crisis. For 2020, it expects gross domestic product to contract by 8.2%.

Better control over the pandemic, a gradual easing of restrictions, and improving trade makes the region’s recovery prospects more attractive than elsewhere, Mr. Cochrane said. However, some economies may not perform up to the regional standard.

“While it is easy to illustrate the region’s ability to contain the pandemic, there are local clusters that illustrate remaining risk within the region,” he said.

Coronavirus disease 2019 (COVID-19) infections in the Philippines totaled 412,097 as of Wednesday, according to the Department of Health. The country has the second most number of cases in Southeast Asia following Indonesia with more than 478,000 cases.

By 2021, emerging markets in the region may benefit from more investment, assuming COVID-19 is better handled, and emerging markets in Eastern Europe, Latin America and Africa continue to struggle with the economic consequences of the pandemic, Mr. Cochrane said.

Foreign direct investment into the Philippines rose on a year-on-year basis for a fourth consecutive month in August. Inflows during that month came in at $637 million, up 46.9% from a year earlier, according to the central bank.

However, net inflows dropped 5.6% year on year to $4.432 billion in the eight months to August.

To support growth prospects in 2021, Mr. Cochrane said resuming the infrastructure program will be helpful and will also boost employment in the near-term as long as social distancing measures are put in place.

“Once new cases go from the thousands to perhaps only double digits, work quickly to arrange travel lanes for business travelers and tourists from the largest sources of visitors, such as China, where the pandemic is under control,” Mr. Cochrane said. — Luz Wendy T. Noble

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Sy-led SM Retail, Inc. is pushing the inclusion of its Green Finds in each of its retail affiliate’s selling pod as the next step for its green movement...


DIGITAL TRANSACTIONS coursed through Land Bank of the Philippines (LANDBANK) increased in the first half, driven by increasing demand and the government’s push for...


1 of 2 Montblanc Meisterstück Glacier Doué Classique Fountain Pen Montblanc Meisterstück Glacier Doué Classique Rollerball “BY ALL MEANS move at a glacial pace....


1 of 6 The fifth-generation C-Class, which debuted globally last year, is now available in the Philippines. The lone variant, for now, is the...


LT Group, Inc. (LTG) posted an attributable net income of P8.87 billion in the second quarter, reversing last year’s net loss of P2.76 billion,...


THE Department of Agriculture (DA) said it is lifting the temporary ban on imports of poultry products from the US state of Missouri and...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


Instagram still holds the top spot for social media in terms of building brand reputation and expanding business potential. Every day, more and more...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.