PH economy contracts for first time in 22 years

The Philippine economy unexpectedly declined by 0.2% in the first quarter of 2020, marking the first contraction since the fourth quarter of 1998.

This downturn ended an 84-quarter streak of growth and fell significantly short of government targets.

Strict quarantine measures implemented to contain the coronavirus, along with earlier factors like the Taal volcano eruption and decreased exports and tourism, contributed to the economic slump.

Presidential spokesperson Harry Roque described the contraction as "minimal" but warned that the economy will likely experience a "steep decline" in the second quarter due to the extended enhanced community quarantine.

Finance Secretary Carlos G. Dominguez III acknowledged that full-year GDP may be worse than projected, potentially leading the Philippines towards a recession this year.

Dominguez stated that April, May, and June are expected to be quite bad as there is no magic medicine for the raging COVID-19 pandemic.

Roque expressed optimism that the economy will bounce back strongly, citing the government's "Build, Build, Build" program, public spending, and money supply as tools for economic recovery.