MANILA, June 18 (Xinhua) -- The Asian Development Bank revised down Philippine economic growth forecast to 3.8 percent contraction for 2020 due to the impact of the COVID-19 in domestic consumption and investment, according to an updated Asian Development Bank (ADB) report released on Thursday.
The report, Asian Development Outlook (ADO) 2020, released in April projected the Philippines' economic growth to fall to 2.0 percent in 2020, assuming the COVID-19 outbreak if contained by June this year.
"The forecast for 2020 is revised down to 3.8 percent contraction because household consumption and investment have slowed more than expected," the ADO Supplement says, adding that the contraction in the global economy will continue to drag external trade, tourism and remittances.
The forecast for 2021 is maintained at 6.5 percent, supported by public infrastructure spending and anticipated recovery in consumer and business confidence, adds the report.
The Philippines contracted by 0.2 percent year on year in the first quarter of 2020 as border restrictions crimped tourism receipts and quarantine measures depressed demand.
The Philippines remains on lockdown as it continues to scale up its capabilities to detect, test, isolate, and treat those who are infected with the coronavirus.
Metro Manila or the national capital region, home to 16.5 million people, is classified as a "high-to-moderate-risk area." Strict lockdown restrictions remain in the region.
However, lockdown restrictions in many provinces across the country were relaxed except in Cebu province, including Cebu City in the central Philippines.
The Philippines now has 27,238 confirmed COVID-19 cases, including 1,108 deaths and 6,820 recoveries, since the disease emerged in the country in January.
The imposition of a lockdown resulted in the temporary closure of many establishments and the displacement of a huge number of workers. More than 2 million workers have lost their jobs in the Philippines.
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