MANILA, Philippines – The Philippine economy shrank 16.5% from a year ago, the lowest recorded quarterly growth starting 1981 series, the Philippine Statistics Authority (PSA) reported on Thursday, August 6.
The second quarter of 2020 Gross Domestic Product (GDP) growth rate indicates that the country is now in recession as a result of COVID-19 pandemic. Lockdown imposed by the government to contain the spread of the virus halts economic activities and sheds millions of jobs.
It is worse than what the government expected it to be. Bangko Sentral ng Pilipinas Governor Benjamin Diokno's projection was around 5.7 to 6.7 percent decline in the second quarter.
The main contributors to the decline of GDP were:
The report also highlights that household consumption in Q2 declined by 15.5 percent. Meanwhile, government spending rose 22.1 percent.
Among the major economic sectors, only Agriculture, forestry, and fishing increased with 1.6 percent growth. Industry and Services both decreased during the period by 22.9 percent and 15.8 percent, respectively.
The Philippines was among Asia's fastest-growing economies before the pandemic, but now the government expects its GDP to shrink 5.5% this year.
The last time the economy shrank badly, 10.7 percent, was in the third quarter of 1984 or during the presidency of Ferdinand Marcos.
— The Summit Express
The second quarter of 2020 Gross Domestic Product (GDP) growth rate indicates that the country is now in recession as a result of COVID-19 pandemic. Lockdown imposed by the government to contain the spread of the virus halts economic activities and sheds millions of jobs.
It is worse than what the government expected it to be. Bangko Sentral ng Pilipinas Governor Benjamin Diokno's projection was around 5.7 to 6.7 percent decline in the second quarter.
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| Philippines plunges into recession as economy shrinks 16.5% in Q2 2020. Photo Courtesy of PSA. |
The main contributors to the decline of GDP were:
- Manufacturing -21.3 percent
- Construction -33.5 percent
- Transportation and Storage -59.2 percent
The report also highlights that household consumption in Q2 declined by 15.5 percent. Meanwhile, government spending rose 22.1 percent.
Among the major economic sectors, only Agriculture, forestry, and fishing increased with 1.6 percent growth. Industry and Services both decreased during the period by 22.9 percent and 15.8 percent, respectively.
The Philippines was among Asia's fastest-growing economies before the pandemic, but now the government expects its GDP to shrink 5.5% this year.
The last time the economy shrank badly, 10.7 percent, was in the third quarter of 1984 or during the presidency of Ferdinand Marcos.
— The Summit Express
