After two consecutive quarters of economic slowdown, the Philippine economy has officially dived into recession.
The Philippine Statistics Authority (PSA) reported that the gross domestic product (GDP) of the country fell to 16.5 percent, the lowest level of growth since 1981. The country has the largest decline in GDP compared to neighboring countries. Second quarter GDP growth of Vietnam is recorded at -0.4 percent, -5.3 percent for Indonesia, and -12.6 percent for Singapore.
Economic managers explained this is a result of the government’s sacrifice to prioritize public health through long lockdown despite its economic consequences. Because of this, National Economic and Development Authority (NEDA) Acting Secretary Karl Chua disclosed the Development Budget Coordination Committee (DBCC) “revised the GDP projections this year to -5.5 percent” which “incorporates already the effects of this MECQ.”
PSA USec. Dennis Mapa said that to meet the “lower end of the DBCC estimates of -3.4, the second half should grow by at least 1.9 percent.”
Meanwhile, there has been improvement on the data regarding production index. The collection of the Bureau of Customs (BOC) is starting to recover amid increasing import volume, together with the collection of Bureau of Internal Revenue (BIR) on excise tax and value added tax which signifies that more Filipinos are buying.
“We are beginning to see the light at the end of the tunnel, improvements are seen in the manufacturing sector as the economy gradually reopens,” Department of Finance (DOF) Sec. Carlos Dominguez III enthused.
Amid the sharp drop of the economy in the second quarter, Bangko Sentral ng Pilipinas (BSP) Gov. Benjamin Diokno is “convinced that Q3 will be better than Q2, and that Q4 will be much better than Q3.”
“The days of comprehensive, nationwide lockdown are over; they exact a heavy damage to the economy, jobs, livelihoods, and incomes,” Diokno claimed.
“Henceforth, the focus of national leaders should be on more localized village level or building level containment. Isolation facilities should be built in all major cities and large municipalities, in support of the government’s test, trace and treat strategy,” he advised.
Malacañang reiterated President Duterte’s call to Congress “to fast track the passage of Bayanihan II” that “would boost our second-semester offensive against COVID-19.”
“We assure everyone that the government will continue working round the clock to strengthen our resilience and bring us back to the path of inclusive growth,” Presidential Spokesperson Harry Roque stated.
– Report from Naomi Tiburcio
