PH recovery will heavily rely on private investments
The Philippines’ economic recovery will greatly depend on how quickly business confidence is restored to boost investments from the private sector, according to a forecast released by Moody’s Investors Service.
Moody’s Senior VP for the Sovereign Risk Group Christian de Guzman said that private investments backed by domestic conglomerates were crucial to the country’s high growth rate pre-pandemic.
De Guzman added that the agency “have yet to see a restoration of that business confidence that would turn the investment picture around. This [business confidence] is something that we are looking [for] in terms of further evidence on whether or not investment can come back in a big way,” Mr. De Guzman said.
Last July, Moody’s adjusted its 2021 Philippine GDP forecast to 5.8% from 7% because of the country’s “continued struggle to recover from the pandemic.”
De Guzman said they will reexamine their projection after the release of the second-quarter GDP on August 10 to include the impact of the upcoming two-week lockdown in the country’s capital city.
