Economic disruptions due to COVID-19 continued as first quarter 2021 year-on-year growth worsened
to -4.2 percent from -0.7 percent the previous year.
The Philippine economy posted its 5th consecutive quarterly contraction. First quarter growth hit negative 4.2 percent, as the spread of COVID-19 and the consequent lockdowns continued to ravage the economy. Weaker year-on-year performance was recorded broadly for both the demand- and
supply-sides, except for government spending that increased to mitigate the contraction. While yearon-year results remained dismal, tapering contractions on a quarterly basis were observed, perhaps asign of a mending economy. The moderately improving but still contracting trend also points to a plausible growth trajectory should the economy be less hampered by lockdown restrictions. Nonetheless, fiscal reforms; a speedy vaccine rollout; and better control of COVID-19 transmissioncould permit economic recovery and boost consumer and business sentiment.
