PSA revises first quarter growth to -0.7%

Updated: Jan 23, 2021


Consumers patiently wait for their turn to enter a supermarket in Cebu City. (Ventures Cebu)


The economy actually sank deeper in the first quarter as the Philippine Statistics Authority (PSA) revised gross domestic product (GDP) growth to -0.7% from the -0.2% that it initially reported.


The PSA also revised net primary income to -5.9% from -4.4%. Gross national income was revised to -1.2% from -0.6%.


Related story: Economy swings from slowdown to contraction: GDP at -0.2%


Economic and finance officials earlier said the second quarter growth figures are likely to be much lower than these as the economy may have hit bottom in the summer months of April and May.


A large part of the country went into lockdown during summer as a measure against the spread of Sars-CoV-2, the virus that causes coronavirus disease 2019 (COVID-19).


The PSA said it will announce the second quarter growth estimates in a press conference on August 5, 2020.


The Philippine economy last contracted in the fourth quarter of 1998, shrinking by 3.0% to pull down full-year growth to -0.5%, due largely to the Asian financial crisis.


If the Philippine economy contracts in the second quarter after the contraction in the first quarter, it would technically be in recession.


A technical recession happens when economic output contracts for two consecutive quarters. (Ventures Cebu)

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