Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort predicts an improvement in country’s economic performance to continue even if it remains in contraction in the fourth quarter of 2020 while positive growth can start only next year.
In a virtual briefing Tuesday Ricafort said he forecasts the fourth-quarter output to be between -8% to -9% while it is projected to range between 6 to 7 percent next year.
“The estimate for this year is somewhere between -9.5% to -7%,” he said. The government on Tuesday reported that growth, as measured by gross domestic product (GDP), posted an -11.5 percent print in the third quarter, better than the -16.9 percent in the previous quarter.
In the first nine months this year, growth contracted by around 10 percent, deeper than the -5.5 percent full year projected by economic managers.
Authorities believe the “worst is over” for the domestic economy this year as progressive easing of restrictions boosts economic activities.