Philippine economic growth plummeted to -9.5% in 2020 from 6.0% the previous year, reflecting the sustained economic impact of the COVID-19 pandemic during the period.
The Philippine economy recorded its worst annual contraction. The Philippines posted a real GDP growth rate of -9.5% in 2020, marking the country’s worst annual contraction since records began in 1946. The severe contraction reflected a sharp plunge in the country’s economic performance, considering that economic growth was recorded at 6.0% in 2019. From 2019 to 2020, inflation showed a minor uptick, but unemployment more than doubled. Despite the continued impact of the COVID-19 pandemic, the country’s economic managers and international organizations forecast economic growth in 2021. In conjunction with the gradual reopening of the economy, stimulus measures are expected to support Philippine economic performance in 2021. Although growth is expected, future surges in COVID-19 cases and delays in COVID-19 vaccination present immediate risks to the country’s economic recovery.
