THE Philippines has pulled out of a pandemic-induced recession as its gross domestic product (GDP) grew 11.8% year-on-year in the second quarter of 2021, according to the country’s statistics agency.
The latest annual growth was the highest GDP recorded since the fourth quarter of 1988, rebounding from the 17% contraction in the same period last year.
“Almost all sectors bounced back despite the imposition of the ECQ (enhanced community quarantine) and the MECQ (modified enhanced community quarantine) last April and May 2021,” Socioeconomic Planning Secretary Karl Kendrick Chua said during a news conference on Tuesday, August 10, reading a joint statement of the government’s economic managers.
“This is a clear indication that managing risks, instead of shutting down large segments of the economy, stands a far better chance of improving both economic and health outcomes,” he added.
Chua also noted that the increase in economic activity led to “more Filipinos regaining their jobs and income.”
“The recent labor force survey results for June 2021 showed that the economy generated an additional 2.5 million jobs compared to the pre-pandemic level, and the quality of employment has improved given the much lower underemployment rate,” he said.
According to Chua, all sectors expanded in the second quarter with the exception of agriculture.
The industry sector climbed 20.8% and services by 9.6%, while the agriculture sector contracted by 0.1% due to the decline in pork production.
The construction sector also grew by 25.7%, as well as manufacturing by 22.3%, and whole and retail trade and repair of motor vehicles and motorcycles by 5.4%.
Household final consumption expenditure (HFCE) increased by 7.2%, while total investment expanded by 75.5% with private investment nearly doubling.
“The robust performance is driven by more than just base effects. It is the result of a better balance between addressing COVID-19 and the need to restore jobs and incomes of the people,” said Chua.
In response to the latest report, Malacañang expressed hope that the growth will be sustained until the end of the year.
“Nagagalak po kami na nagkaroon tayo ng ganyang kataas na pagbangon ng ating ekonomiya (We’re happy that we’ve had such a high recovery in our economy),” said Presidential Spokesperson Harry Roque.
“We’re hoping po na bagamat tayo po’y nag lockdown ngayon ng two weeks, na makakabawi pa rin tayo sa last quarter (Even though we had to impose a lockdown for two weeks, we can still recover in the last quarter),” he added.
Roque also maintained that the growth resulted from striking the balance between addressing the ongoing pandemic and restoring jobs.
“Patunay po ito na sa gitna ng pandemya, pinag-iingatan natin ang buhay para sa hanapbuhay (This is proof that in the middle of the pandemic, we are preserving health to allow citizens to pursue livelihoods),” he said.
