The Philippine economy continues to endure a recession in Q3 2020 but shows signs of improvement from the previous quarter as the downturn slowed to 11.5 percent from 16.9 percent the previous quarter.
The economic slump eases in the third quarter. The country remains in recession as the economy contracted for a third consecutive quarter. Year-on-year economic growth was recorded at -11.5 percent in the third quarter, showing improvement from the record low -16.9 percent growth rate posted in the previous quarter. The unemployment rate continued to exceed its pre-pandemic levels but also continued to decline in Q3, dropping to 8.7 percent from 10.0 percent in the previous quarter. Inflation quickened to a 20-month high of 3.3 percent in November, owing to higher food inflation driven by supply disruptions. Businesses and consumers generally showed lower confidence in the third quarter, mostly due to expectations of the COVID-19 pandemic’s continuing impact on the economy. While the economy remains in downturn, it is expected that the situation will continue to improve in the coming quarters as the government focuses on progressively reducing COVID-related risks.
