The Philippine economy bears the full brunt of the COVID-19 pandemic and sinks into a technical recession as growth plummets to a record low of -16.48 percent in Q2 2020 from -0.7 percent in the previous quarter.
The Philippine economy experiences its worst recorded contraction. Economic growth was posted at -16.48 percent in the second quarter. This second consecutive quarterly decline surpasses the previous worst contraction of 10.7 percent in Q3 1984 and marks the country’s first technical recession since 1991. The sharp fall in second quarter growth was mainly driven by the implementation of community quarantine measures in response to the COVID-19 pandemic. The economic impact of the pandemic will likely continue into succeeding quarters as infections rise and potential vaccines remain in development. Accordingly, the government haves shifted its focus on growth, public health, and social protection to prevent the situation from worsening.
