The International Monetary Fund on Tuesday reduced the growth forecast for the ASEAN-5 economies, including the Philippines, to 4.3 percent from its previous estimate of 4.9 percent, amid the new surge in COVID-19 infections that may derail recovery from the pandemic.
The revised estimate is contained in the July 2021 World Economic Outlook Update released to the media. The ASEAN-5 groups Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
Commenting on the Emerging Market and Developing economies, the IMF said the forecast for the group was revised down 0.4 percentage point in 2021 to 6.3 percent. It said it was “largely because of growth markdowns for emerging Asian economies.”
“Growth prospects in India have been downgraded following the severe second COVID wave during March–May and expected slow recovery in confidence from that setback. Similar dynamics are at work in the ASEAN-5 group where recent infection waves are causing a drag on activity,” IMF said.