Philippines Economic Update, December 2020 : Building a Resilient Recovery
The Philippine economy contracted by 10.0 percent, year-on-year, in the first three quarters of 2020, given the triple shock brought by the Coronavirus disease (COVID-19) pandemic. COVID-19 delivered a triple shock of a health crisis, strict contai...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/983051607354214738/Philippines-Economic-Update-Building-a-Resilient-Recovery http://hdl.handle.net/10986/34899 |
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okr-10986-348992021-04-23T14:02:11Z Philippines Economic Update, December 2020 : Building a Resilient Recovery World Bank ECONOMIC GROWTH ECONOMIC SHOCK CORONAVIRUS COVID-19 PANDEMIC IMPACT EXCHANGE RATE EXTERNAL SECTOR FISCAL TRENDS MONETARY POLICY EMPLOYMENT POVERTY SHARED PROSPERITY ECONOMIC OUTLOOK RISKS DISASTER RISK MANAGEMENT DISASTER RESILIENCE The Philippine economy contracted by 10.0 percent, year-on-year, in the first three quarters of 2020, given the triple shock brought by the Coronavirus disease (COVID-19) pandemic. COVID-19 delivered a triple shock of a health crisis, strict containment measures, and a global recession of unprecedented scale. The sharp contraction in the second quarter was driven by the steep dive in private domestic demand, deep contraction in public investment activities, and the collapse of trade due to the impact of strict containment measures domestically and globally. Most of the country entered a more relaxed community quarantine in mid-August with a gradual opening of businesses and government operations. Yet, the economy further contracted in the third quarter, albeit a modest improvement from the peak of the outbreak. Moreover, the country was hit by a series of strong typhoons which may cause delay on the pace of the recovery as economic activities were affected in some areas. This report will feature disaster risk management (DRM) challenges the country faces and policy recommendations to strengthen its fiscal, physical, and social resilience. The severity of the recession can be explained, first and foremost, by the collapse in private consumption, as containment measures led to a fall in employment and incomes. Private consumption contracted by 8.2 percent, its worst performance on record. This was in large part due to a combination of factors that crippled domestic demand, including record-high unemployment, declining incomes (including remittances), movement restrictions that suppressed consumption, and a historic decline in consumer confidence. The deepest contraction was registered in the consumption of non-essential goods and services and those that were affected by the implementation of strict containment measures, while essential goods such as food registered small positive growth. In particular, the combination of travel restrictions and weak consumer confidence which weighed on demand, resulted in a collapse in domestic tourism expenditures, which make up a fifth of private consumption. 2020-12-08T15:44:22Z 2020-12-08T15:44:22Z 2020-12-02 Report http://documents.worldbank.org/curated/en/983051607354214738/Philippines-Economic-Update-Building-a-Resilient-Recovery http://hdl.handle.net/10986/34899 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Economic Updates and Modeling East Asia and Pacific Philippines |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ECONOMIC GROWTH ECONOMIC SHOCK CORONAVIRUS COVID-19 PANDEMIC IMPACT EXCHANGE RATE EXTERNAL SECTOR FISCAL TRENDS MONETARY POLICY EMPLOYMENT POVERTY SHARED PROSPERITY ECONOMIC OUTLOOK RISKS DISASTER RISK MANAGEMENT DISASTER RESILIENCE |
| spellingShingle |
ECONOMIC GROWTH ECONOMIC SHOCK CORONAVIRUS COVID-19 PANDEMIC IMPACT EXCHANGE RATE EXTERNAL SECTOR FISCAL TRENDS MONETARY POLICY EMPLOYMENT POVERTY SHARED PROSPERITY ECONOMIC OUTLOOK RISKS DISASTER RISK MANAGEMENT DISASTER RESILIENCE World Bank Philippines Economic Update, December 2020 : Building a Resilient Recovery |
| geographic_facet |
East Asia and Pacific Philippines |
| description |
The Philippine economy contracted by
10.0 percent, year-on-year, in the first three quarters of
2020, given the triple shock brought by the Coronavirus
disease (COVID-19) pandemic. COVID-19 delivered a triple
shock of a health crisis, strict containment measures, and a
global recession of unprecedented scale. The sharp
contraction in the second quarter was driven by the steep
dive in private domestic demand, deep contraction in public
investment activities, and the collapse of trade due to the
impact of strict containment measures domestically and
globally. Most of the country entered a more relaxed
community quarantine in mid-August with a gradual opening of
businesses and government operations. Yet, the economy
further contracted in the third quarter, albeit a modest
improvement from the peak of the outbreak. Moreover, the
country was hit by a series of strong typhoons which may
cause delay on the pace of the recovery as economic
activities were affected in some areas. This report will
feature disaster risk management (DRM) challenges the
country faces and policy recommendations to strengthen its
fiscal, physical, and social resilience. The severity of the
recession can be explained, first and foremost, by the
collapse in private consumption, as containment measures led
to a fall in employment and incomes. Private consumption
contracted by 8.2 percent, its worst performance on record.
This was in large part due to a combination of factors that
crippled domestic demand, including record-high
unemployment, declining incomes (including remittances),
movement restrictions that suppressed consumption, and a
historic decline in consumer confidence. The deepest
contraction was registered in the consumption of
non-essential goods and services and those that were
affected by the implementation of strict containment
measures, while essential goods such as food registered
small positive growth. In particular, the combination of
travel restrictions and weak consumer confidence which
weighed on demand, resulted in a collapse in domestic
tourism expenditures, which make up a fifth of private consumption. |
| format |
Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Philippines Economic Update, December 2020 : Building a Resilient Recovery |
| title_short |
Philippines Economic Update, December 2020 : Building a Resilient Recovery |
| title_full |
Philippines Economic Update, December 2020 : Building a Resilient Recovery |
| title_fullStr |
Philippines Economic Update, December 2020 : Building a Resilient Recovery |
| title_full_unstemmed |
Philippines Economic Update, December 2020 : Building a Resilient Recovery |
| title_sort |
philippines economic update, december 2020 : building a resilient recovery |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/983051607354214738/Philippines-Economic-Update-Building-a-Resilient-Recovery http://hdl.handle.net/10986/34899 |
| _version_ |
1764481891506847744 |