Philippine economy records historic recession

The second quarter had seen the Philippine economy dropping more than what was predicted. This came to be the first recession of the country in almost three decades as the struggling economy continues to suffer from one of the world’s longest virus-driven lockdowns.

The nation’s economy monitored a 16.5% contraction in the second quarter from a year ago- the sharpest quarterly downturn since 1981, the Philippine Statistics Authority said on Thursday.

Gross domestic product placed higher than the 9% contraction predicted by economists in a Reuters survey, surpassing the revised 0.7% contraction from January to March. On a seasonally adjusted basis, the country’s GDP declined 15.2% in the second quarter.

“The Philippine economy crash-landed into recession with the 2Q GDP meltdown showcasing the destructive impact of lockdowns on the consumption-dependent economy,” said ING senior economist Nicholas Antonio Mapa.