Philippines falls into recession for the first time in almost 3 decades
Philippines’ economy shrank by 16.5% in the April to June quarter from the same period in 2019, the Philippine Statistics Authority reported.
This is the biggest slump on record in the country’s quarterly GDP data dating back to 1981 and plunges the Philippines into recession for the first time in 29 years. Seasonally adjusted GDP fell 15.2% in the second quarter from the first three months of the year.
According to a Maybank report released earlier this year, eight million people in the Philippines are at risk of losing their jobs as the COVID-19 pandemic continues to wreck economic devastation on the South-East Asian country.
As infections continue to surge in many cities across the Philippines, president Rodrigo Duterte has also moved to place Metro Manila and nearby provinces such as Laguna, Cavite, Rizal and Bulacan under the Modified Enhanced Community Quarantine (MECQ), which will see some businesses forced to close until at least August 18.
Like many of its neighbours in ASEAN, the Philippines is likely to experience negative growth in 2020, with the Asian Development Bank (ADB) predicting a 3.8% contraction of the country’s economy this year.