GDP Report for Q1 of 2021 at 4.2%, Marks Five Consecutive Quarters of Decline

The pandemic-induced recession carried over into the first quarter of 2021 after the country’s economy shrank by 4.2% year-on-year according to government reports, worse than what was earlier forecasted. This marks five straight quarters of economic decline, which is the longest since the debt crisis in the 1980s during the Marcos era.

It’s evident in recent reports released by the government that the Philippines’ gross domestic product (GDP) continues to deflate year on year. GDP was at 0.7% in the first quarter of 2020;  16.9% in the second quarter; 11.4% in the third quarter; and 8.3% in the fourth quarter of last year.

The full-year GDP drop in 2020 was at a record 9.6%, the worst post-war recession of the country. For 2021, the government forecasts a 6.5-7.5% GDP growth.

Moreover, the agriculture, industry, and services sectors all weakened year-on-year during the first three months said Dennis Mapa, a national statistician.

Source: Inquirer