Goldman Sachs cuts 2022 Philippines growth forecast to 7.1%

Goldman Sachs has cut its 2022 gross domestic product (GDP) growth projection for the Philippines to 7.1% from 7.3% previously following the surge in new cases of COVID-19 in Metro Manila, four surrounding provinces, and other areas. The economic team said placing the areas under stricter alert level 3 restrictions until January 15 will cost PHP3 billion in output losses per week. Goldman Sachs’ forecast, however, is within the government’s 7-9% growth target. The Philippines was expected to exceed Malaysia’s 6.5%, Indonesia’s 5.1%, Singapore’s 5%, Thailand’s 3.4%, Taiwan’s 3.2%, South Korea’s 3.1%, and Hong Kong’s 2.6%. Goldman Sachs forecasted GDP in the first quarter to grow 6.6% year-on-year, down from 6.9% previously.