Philippines: Virus-hit Economy Plunges into Recession
The Philippines plunged into recession after its biggest quarterly contraction on record, data showed Thursday, as the economy reels from coronavirus lockdowns that have wrecked businesses and thrown millions out of work.
Gross domestic product shrank 16.5 percent on-year in the second quarter, the Philippine Statistics Authority said, when the country endured one of the world’s longest stay-at-home orders to slow the spread of the virus that has devastated economies globally.
It followed a revised 0.7 percent contraction in the first three months of the year and marked the biggest reduction in economic activity since records began in 1981 during the Ferdinand Marcos dictatorship. It is the country’s first recession in three decades.
The outlook for the archipelago is bleak, with the number of coronavirus infections surging past 115,000 this week – a more than fivefold increase since early June when the economy-crippling restrictions were eased.
