Gov’t numbers: PH out of recession as economy grows by 11.8 percent in Q2 | Inquirer Business
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Gov’t numbers: PH out of recession as economy grows by 11.8 percent in Q2

By: - Reporter / @bendeveraINQ
/ 10:42 AM August 10, 2021

MANILA, Philippines—The Philippines in the second quarter of 2021 exited its longest recession since the 1980s’ debt crisis as gross domestic product (GDP) grew 11.8 percent year-on-year, the government reported on Tuesday (Aug 10).

The year-on-year growth in second-quarter GDP, however, was mostly a result of the low base in 2021, when the economy shrank by a record 16.9 percent from April to June compared to pre-pandemic output, no thanks to the most stringent enhanced community quarantine (ECQ) imposed from mid-March to May 2020, which froze 75 percent of the economy.

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In 2020, the Philippines posted its worst annual GDP drop of 9.6 percent due to prolonged quarantine restrictions and meager financial support to badly hit sectors.

The second-quarter growth ended the five-straight quarters of recession which started in the first quarter of 2020. GDP shrank by 3.9 percent year-on-year during the first quarter of 2021.

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However, the second-quarter GDP was 1.3-percent smaller than the first-quarter output as National Capital Region (NCR) Plus — Metro Manila and four neighboring provinces accounting for half of the economy — reverted to ECQ for two weeks in April after COVID-19 cases surged.

The government targets economic growth of 6-7 percent this year expecting a reopening of the economy and more vaccinations.

But many private sector economists say the more contagious Delta strain of SARS Cov2, the virus causing COVID-19, posed a threat to Philippines’ economic recovery.

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TAGS: economy, enhanced community quarantine (ECQ), gross domestic product (GDP), Growth, lockdowns, pandemic, Q2, Recession
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