Philippines’ GDP Growth Rate Drops 16.5 Percent, Lowest Since 1981

MANILA, Aug 6 (NNN-PNA) – The GDP growth rate of the Philippines dropped by 16.5 percent in the second quarter of 2020, the lowest recorded quarterly growth since 1981, bringing the country to a technical recession.

In a virtual briefing held today, the Philippine Statistics Authority (PSA) said, the economy contracted by 16.5 percent during the Apr to June period, following the downward-revised -0.7 percent in the first quarter of the year, and 5.4 percent in the second quarter of 2019.

PSA head, Dennis Mapa, said, the main contributors to the decline were: manufacturing, 21.3 percent; construction, 33.5 percent; and transportation and storage, 59.2 percent.

Among the major economic sectors, the PSA said, only agriculture, forestry, and fishing increased with 1.6 percent growth.

The PSA added that industry and services both decreased during the period by 22.9 percent and 15.8 percent, respectively.

On the other hand, the government’s final consumption expenditure posted positive growth of 22.1 percent.

The PSA said, Net Primary Income from the rest of the world and gross national income both declined by 22.0 percent and 17.0 percent, respectively.

Mapa said, the economic slowdown was “partly because of the Apr – May lock-down,” adding that the second-quarter GDP rate is the “largest decline” so far, since 1981.

In mid-Mar, the Philippines imposed a lock-down in Metro Manila and other parts of the country to curb the spread of the virus.– NNN-PNA