The Philippines economy shrank a record 16.5% year-on-year in the second quarter of 2020, following an upwardly revised 0.7 contraction in the previous quarter, worse than market consensus of 9% contraction and entering a technical recession. This was the steepest contraction in the economy since the series began in 1981, as the impact coronavirus pandemic.
Fixed investment contracted (-37.8% vs -4.4% in Q1), and net external contributed negatively to GDP, as exports tumbled (-37% vs -4.4%), while imports dropped faster (-40% vs -8.7%). Also, private consumption slumped 15.5 percent ( vs 0.2%). Conversely, government spending growth jumped by 22.1 (vs 7%). On the production side, activity contracted mainly for mining and quarrying (-32.1% vs -21.1%), manufacturing (-22.1% vs -7.1%), construction (-27.9% vs 0.3%); transportation and storage (-55.7% vs -11.1%), accommodation and food services activities (-64.9% vs -10.1%).