PSA says this is PHL’s first economic contraction since 1998
(Eagle News) — The Philippine economy contracted by 0.2 percent in the first quarter of 2020, its first contraction since the fourth quarter of 1998, the Philippine Statistics Authority said.
According to the PSA, the main contributors to the decline were manufacturing, transportation and storage, and accommodation and food service activities.
Agriculture, forestry and fishing; and industry—both major economic sectors—contracted by 0.4 percent and 3.0 percent, respectively.
Services, on the other hand, posted a 1.4 percent growth in the same period.
According to the PSA, on the expenditure side, the following declined:
- Gross Capital Formation (18.3 percent)
- Exports (3.0 percent)
- Imports ( 9.0 percent)
Household Final Consumption Expenditure and Government Final Consumption Expenditure posted a 0.2 percent and 7.1 percent growth, respectively, the PSA said.
According to Acting SocioEconomic Panning Secretary Karl Kendrick Chua, the contraction came as the country faced “significant socio-economic risks and shocks during the first quarter of 2020, all totally unexpected.”
He said these include the January eruption of Taal volcano, the decline of both trade and tourism due to the COVID-19 pandemic in February, and the enhanced community quarantine in March.
“Our economic growth is showing weaker performance compared to the past two decades. Even so, our priorities are clear: to protect lives and health of our people,” he said.
In the fourth quarter of 2019, the Philippine economy posted a 6.7 percent growth.
The country posted a 5.7 percent growth in the first quarter of last year.