The Edition

Latest

Virus-hit Philippine economy plunges into recession

06 August 2020, MVT 21:35
People wearing masks shop for fresh food at a market in Manila on August 6, 2020. - The Philippines plunged into recession after its biggest quarterly contraction in four decades, data showed on August 6, as the economy reels from COVID-19 coronavirus lockdowns that have wrecked businesses and thrown millions out of work. PHOTO: LISA MARIE DAVID / AFP
06 August 2020, MVT 21:35

The Philippines plunged into recession after its biggest quarterly contraction on record, data showed Thursday, as the economy reels from coronavirus lockdowns that have wrecked businesses and thrown millions out of work.

Gross domestic product shrank 16.5 percent on-year in the second quarter, said the Philippine Statistics Authority, after the country endured one of the world's longest stay-at-home orders to slow the spread of the virus that has devastated economies globally.

It followed a revised 0.7 percent contraction in the first three months of the year and marked the biggest reduction in economic activity since records began in 1981 during the Ferdinand Marcos dictatorship. It is the country's first recession in three decades.

The outlook for the archipelago is bleak, with the number of coronavirus infections surging past 115,000 this week -- a more than fivefold increase since early June when the economy-crippling restrictions were eased.

"Without doubt, the pandemic and its adverse effect on the economy are testing the economy like never before," said acting Socioeconomic Planning Secretary Karl Chua.

Manila, Philippines | AFP

MORE ON WORLD