Maybank drops PH GDP forecast
Malaysian financial giant Maybank reduced its Gross Domestic Product (GDP) growth forecast for the Philippines to 7.1 and 7.2% from the original 7.7%.
In a virtual forum organized by subsidiary Maybank Kim Eng, economist Zamros Dzulkafli said that the bank lowered its GDP growth projection for the second half of 2021 due to the “ongoing enhanced community quarantine in the NCR and surrounding areas for two weeks.”
Despite the country’s 11.8% Q2 expansion, Dzulkafli stated that the economy’s 1.3% quarter-on-quarter growth is still weakened by the 0.7% increase in Q1.
The economist further stated that the Philippines is still operating below pre-pandemic level.
“If you look at the trajectory between the pre-and post-COVID-19 recession, we are looking at a 15% gap, which means that the scarring effect is that we are losing 15% of the economy, which I think is very difficult to gain despite the double digit growth for the economy,” Dzulkafli added.
