(Bloomberg) -- The Philippine economy suffered its deepest contraction in decades in the second quarter amid one of Asia’s earliest and longest lockdowns against the coronavirus pandemic.
Gross domestic product shrank 16.5% from a year ago, according to the national statistics agency. The median forecast in a Bloomberg survey of 21 economists was for a 9.4% contraction, with estimates ranging from -2.5% to -23.8%. GDP contracted for a second consecutive quarter on a quarter-on-quarter basis, down 15.2%, implying the economy is in recession.
Key Insights
- President Rodrigo Duterte imposed a stringent quarantine that shut most businesses and suspended public transport from March to May. A surge in Covid-19 infections prompted the government to reimpose a lockdown in the capital region and surroundings Tuesday
- Record-high unemployment and a steep decline in money sent home by Filipinos weighed on private consumption, which drives roughly two-thirds of GDP
- Exports suffered double-digit annual drops from March to June as the lockdown restricted production and snarled supply chains
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- The government is hiring more health care workers and ramping up testing to control the outbreak and inspire consumer confidence
- The number of Covid-19 cases has risen more than sixfold since restrictions were eased in June, making the Philippine outbreak the second-largest in Southeast Asia
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