The Philippines economy in trouble as businesses brace for recession

economy

MANILA – The Philippines expects to go to recession the damage wrought by the pandemic and lockdowns associated with it are affecting the nation’s economy.

Finance Secretary Carlos Dominguez III said in a televised address earlier last month that Covid-19 has hit the economy hard and the estimated GDP (gross domestic product) growth will be 0% to -1%. Asian Development Bank’s outlook for the Philippines is at 2% full-year GDP growth while World Bank’s forecast at 3%.

According to Bangko Sentral ng Pilipinas, The country’s first quarter gross domestic product data are expected to be at around below 6 to 6.5 percent.

Bangko Sentral ng Pilipinas Governor Benjamin Diokno called it a “technical recession” where the country experiences economic contraction due to two successive quarters of negative growth.

The extended lockdown or enhanced community quarantine in Metro Manila and urban areas deemed high risk is scheduled to end this month, which several areas may be placed general quarantine with easing restrictions.

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