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UPDATE 1-Philippine economy could contract in 2020 due to coronavirus outbreak

Published 03/24/2020, 01:57 PM
Updated 03/24/2020, 02:00 PM
© Reuters.

* Growth in 2020 could be between -0.6% to +4.3%
* Philippine c.bank announces 200 bps cut in RRR
* Philippines has 501 confirmed cases, 33 coronavirus deaths

(Adds more details, background)
MANILA, March 24 (Reuters) - Philippines said that its
economy could contract for the first time in more than two
decades this year due to the fallout from the coronavirus
pandemic.
The economic planning agency said on Tuesday growth drivers
like consumption, tourism and trade will take a hit with half of
the country's population under lockdown, while strict travel
restrictions remain in place.
Growth this year could be between -0.6% to +4.3% without
mitigating measures, the agency said, adding the estimates
assumed that the adverse impact of the fast-spreading virus will
be felt until June.
The agency said hitting the upper end of the forecast would
only be possible if Philippines is able to stem the impact of
the coronavirus and strict home quarantine measures to the rest
of the economy.
The government has set a 6.5%-7.5% growth target for the
year.
The Philippine central bank announced a 200 basis points
reduction in the reserve requirement ratio (RRR) of banks on
Tuesday, just a few days after it opted for a
deeper-than-expected 50 bps cut in policy rates to counter the
economic blow of the virus. It also approved on Monday a 300 billion pesos ($5.87
billion) programme to support the government's fight to stave
off the impact of the virus, which has killed 33 people and
infected 501 in the country.


($1 = 51.1000 Philippine pesos)


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