Philippines faces potential recession as GDP contracts

The coronavirus pandemic has caused significant declines in global markets and economic activities, leading to forecasts of a worldwide GDP contraction.

In the Philippines, the World Bank predicts a 5.2% contraction while the IMF projects a 4.9% decline for 2020.

The Philippine economy contracted by -0.2% in Q1 2020, marking its first negative growth since 1998.

BSP Governor Benjamin Diokno expects the GDP to contract further by 5.7% to 6.7% in Q2 due to prolonged lockdowns.

If this trend continues, the Philippines will enter a recession for the first time since 1998, during the Asian financial crisis.