News Philippines plunges into recession; economy shrinks 16.5% in second...

Philippines plunges into recession; economy shrinks 16.5% in second quarter

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The Philippines’ economy dips a record 16.5% in the second quarter of 2020, throwing the nation into a technical recession. 

According to a Bloomberg article, this is the country’s deepest contraction on record. This is the worst reading in a data series going back to 1981. 

The median forecast in a Bloomberg survey of 21 economists was for a 9.4% contraction. GDP declined for a second consecutive quarter on a quarter-on-quarter basis, down 15.2%, implying the economy is in recession.

The country’s economic managers said they now expect the economy to shrink 5.5% this year — down from earlier estimates for a 2% to 3.4% decline — before rebounding strongly next year.

“The economic cost of trying to contain the virus is leaving large scars to household and corporate balance sheets, which will weigh heavily on demand for many months to come,” Capital Economics analyst Alex Holmes wrote in a note after the release. “A failure to contain the virus, continued restrictions to movement and inadequate policy support mean the Philippines is also likely to experience one of the region’s slowest recoveries,” he added. 

Photo by Daily Mail

Ryan Namia
Ryan Namia spends most of his days reading over drafts of new written content and determining which ones make the final cut for online and print publication. He received his Bachelor's degree in Journalism in 2015 and has been writing since 2016. Got story to tell? Email him at eic@theglobalfilipinomagazine.com.

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