Philippine Q2 economy shrinks 16.5% on pandemic-induced lockdown

SINGAPORE (ICIS)–The Philippine economy posted a record 16.5% year-on-year contraction in the second quarter as consumption and private sector investments slumped due to a prolonged coronavirus pandemic-induced lockdown.

Manufacturing and services sectors registered their largest contraction in decades at 21.3% and 15.8%, respectively, according to the National Economic Development Authority (NEDA).

Construction slumped 33.5% year on year during the quarter while transportation and storage tumbled 59.2%, data from the Philippine Statistics Authority (PSA) show.

Trade was dismal for the period, with exports down 37% and imports down 40%. Government spending posted a 22.1% growth.

In the first half of 2020, the country’s GDP contraction was 9.0%.

The Philippines’ total coronavirus infections to date have crossed 100,000 with more than 2,000 deaths, according to data from the World Health Organization (WHO).

It has the second highest number of infections in southeast Asia, next to Indonesia.

The recent sharp spike in infections prompted the Philippine government to reinstate lockdown measures from 4 August.

The first lockdown was imposed from mid-March to end-May in the major island of Luzon.

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