Economic contraction continued into fourth quarter 2020 as year-on-year growth was -8.3 percent on account of poor agricultural output and continued COVID-19 quarantine measures. The downturn further decelerated. Year-on-year economic growth was recorded at -8.3 percent in the fourth quarter, marking a third consecutive quarterly contraction. But the downturn decelerated from the previous quarter’s 11.4 percent contraction owing to increased accessibility of public transport and lightened business restrictions. However, the contraction still outpaced the 5.7 percent growth recorded in fourth quarter 2019 due to the continuing economic impact of COVID-19. In addition to community quarantines, African swine fever (ASF) and a series of typhoons weakened fourth quarter performance by prompting a significant contraction in the agriculture, forestry, and fishing sector. The supply disruptions caused by ASF and the typhoons also contributed to an uptick in food inflation, driving the headline inflation rate to a two-year high.
