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Philippine economy bounces back from recession with 11.8 percent growth in Q2

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="A fishing raft with a resting shed floats on the shores of Baseco in Tondo Manila on July 09, 2021. Jonathan Cellona, ABS-CBN News/File" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/news/08/10/20210709-society-poverty-economy-jc-015914010_ios.png"/><figcaption>A fishing raft with a resting shed floats on the shores of Baseco in Tondo Manila on July 09, 2021. <em>Jonathan Cellona, ABS-CBN News/File</em></figcaption></figure></div><p>MANILA <strong>(UPDATE)</strong> - The Philippine economy emerged from recession after its gross domestic product grew by 11.8 percent in the second quarter, the state statistics bureau said Monday.</p><p>&quot;This was the highest since the 12 percent growth in the fourth quarter of 1988,&quot; National Statistician Dennis Mapa said.</p><p>The figure follows the revised 3.9 percent contraction in the first quarter and the 8.3 percent drop in the fourth quarter of 2020, amid the impact of the COVID-19 pandemic. </p><p>The high growth figure takes into account low base effects, as the economy contracted by a record 17 percent in the second quarter of 2020.</p><p>In terms of quarter-on-quarter growth, the second quarter GDP shrank a seasonally adjusted 1.3 percent from the first three months of the year. </p><div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="GDP Growth Rate. Chart: ABS-CBN Data Analytics" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/business/08/10/20210810-gdp-chart-a.png"/><figcaption>GDP Growth Rate. <em>Chart: ABS-CBN Data Analytics</em></figcaption></figure></div><div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="GDP Growth Rate. Chart: ABS-CBN Data Analytics" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/business/08/10/20210810-gdp-chart-b.jpg"/><figcaption>GDP Growth Rate. <em>Chart: ABS-CBN Data Analytics</em></figcaption></figure></div><p>Socioeconomic Planning Secretary Karl Kendrick Chua meanwhile said the double-digit year-on-year growth was achieved through better management of pandemic risks.</p><p>“Almost all sectors bounced back despite the imposition of the ECQ and the MECQ last April and May of 2021. This is a clear indication that managing risks instead of shutting down large segments of the economy runs a better chance of improving both economic and health outcomes,” Chua said.</p><p>Last year, the country&#x27;s GDP contracted a record 9.6 percent, the worst growth rate level since the end of World War 2. </p><p>In real terms, the Philippines&#x27; second quarter GDP is 7.2 percent lower than the pre-pandemic level seen in the same quarter of 2019, according to ABS-CBN Data Analytics team head Edson Guido.</p><p>Guido also noted that the 12 percent growth in Q4 of 1988 was posted sans a recession the year before, unlike the Q2 growth rate this year.</p><p>Ron Acoba, chief investment strategist at Trading Edge said the double-digit growth figure was expected by analysts as it came from a low base. He said anything below 10 percent would have disappointed the market. </p><p>The economy lost P1.86 trillion in 2020 and P563 billion for the first half of 2021, data showed.</p><div><strong>GDP Growth rate in the last 6 quarters:</strong></div><ul>	<li>2020 Q1 = -0.7 percent </li>	<li>2020 Q2 = -17.0 percent </li>	<li>2020 Q3 = -11.6 percent </li>	<li>2020 Q4 = -8.3 percent</li>	<li>2021 Q1 = -3.9 percent </li>	<li>2021 Q2 = 11.8 percent </li></ul><p>Before the recent surge of COVID-19 cases and the emergence of the new Delta variant, economic managers have said the economy could grow by 6 to 7 percent this year. </p><p>However, gains could be tempered by the enhanced community quarantine imposed in Metro Manila from Aug. 6 to Aug. 20. </p><p>The hard lockdown will likely have an impact on the third-quarter numbers, Bangko Sentral ng Pilipinas Gov. Benjamin Diokno earlier said. </p><p>The economy is poised to lose at last P150 billion each week that Metro Manila is under lockdown, government estimates showed. </p><p>Mobility restrictions will also likely increase unemployment to over 600,000 individuals and the number of poor Filipinos by about 250,000, Socioeconomic Planning Secretary Karl Kendrick Chua said. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/08/07/21/neda-ecq-to-cost-philippine-economy-p150-billion-per-week">ECQ to cost Philippine economy P150 billion per week, says Chua</a></li>	<li><a href="https://news.abs-cbn.com/business/06/30/21/philippine-economy-bounce-back-2022-amro">Philippine economy poised to bounce back &#x27;sharply&#x27; in 2022: ASEAN think tank</a></li>	<li><a href="https://news.abs-cbn.com/business/08/09/21/q1-growth-rate-revised-to-39-pct-from-42-pct">First quarter GDP growth rate revised to -3.9 percent from -4.2 percent</a></li></ul><div><strong>RELATED VIDEO: </strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1717028" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

The Philippine economy emerged from recession after its gross domestic product grew by 11.8 percent in the second quarter, the state statistics bureau said Monday.