Press "Enter" to skip to content

Philippines into Recession This Year, Rebound in 2021

  • Banking giant HSBC expects the Philippine economy to go into a recession this year amid the surge in the number of COVID-19 cases.
  • The country may enter a recession this year as the GDP is expected to contract by 7% in the second quarter, 4.3% in the third quarter, and 3.9% in the fourth quarter.
  • For 2021, the banking giant sees the economy recovering with a GDP growth of 7.4%.
  • Visit The Financial Today’s homepage for more stories.

Banking giant HSBC expects the Philippine economy to go into a recession this year amid the surge in the number of COVID-19 cases.

In a report, HSBC economist Noelan Arbis stated that the country may enter a recession this year as the GDP is expected to contract by 7% in the second quarter, 4.3% in the third quarter, and 3.9% in the fourth quarter.

In the first quarter of 2020, the country’s GDP contracted by 0.2% that marked the end of 84 straight quarters of positive growth as the economy ground to a halt due to strict quarantine measures to prevent the spread of the coronavirus.

HSBC also said in the report that Thailand is expected to post the biggest GDP contraction in the Southeast Asian region at 8.2%, followed by Malaysia at 6.7%, Singapore at 6.6%, and Indonesia at 0.9%. On the other hand, Vietnam is expected to oppose the course with a GDP growth of 1.6%.

For 2021, the banking giant sees the economy recovering with a GDP growth of 7.4%. The Philippines may post a GDP growth of 2.5% in the first quarter, 10.1% in the second quarter, 9% in the third quarter, and 7.8% in the fourth quarter of 2021.

Be First to Comment

Leave a Reply

Hi, I'm Alfred Cardenas!We’re running an equity crowdfunding campaign.

This is your chance to invest and own a part of The Financial Today!