The Philippines will be among the “hardest hit” countries, if the economic slowdown in China persists in the next five years, the regional think tank of Asian Development Bank said Thursday.
ADB Institute said in a working paper series that the Philippines, along with Malaysia would be the most affected countries in Southeast Asia by the economic slump in China.
“In Southeast Asia, the Philippines and Malaysia would be hardest hit, with GDP growth slowing down by more than 0.40 percentage point, due to their strong trade linkages with the PRC [People’s Republic of China],” ADB Institute said.
ADB Institute said the average GDP growth rate of developing Asia as a whole, excluding China, would decelerate by 0.26 percentage point in the next five years because of China’s slowdown.
The Philippines will experience a cut of 0.47 percent in the economic growth between 2016 to 2020, according to the think tank. “The economies with closer trade linkages to the PRC would suffer more export deceleration. The PRC’s slowdown would dampen the exports growth of the Philippines,”ADBI said.