GDP fell by 9.6% in 2020 after growing by 6.1% in 2019, given the severe impact of the COVID-19 pandemic. The contraction was sharpest in the second quarter, falling by 17.0% during a period of strict lockdowns. Steep declines in consumption (7.9%) and investment (27.5%) were only partly offset by higher government spending (which grew by 10.5%). The unemployment rate peaked at 17.6% in April 2020 before easing to 8.7% in October (well above the 5.3% rate in January). Services, which accounts for 61% of GDP, fell by 9.2% in 2020; industry fell by 13.2%; and agriculture fell by a slight 0.2%. Inflation averaged 2.6% in 2020, edging higher toward yearend on higher food prices (it rose to 4.5% during the first quarter of 2021). Government debt increased to 54.6% of GDP by end-2020, compared with 39.6% at end-2019. GDP growth is forecast to rise to 4.5% in 2021 and 5.5% in 2022.
|Composite Stock Price Index 1||6.0 (Jul21)||6.0||6.0|
|Broad Money Growth 2||5.9 (Jul21)||5.9||6.5|
|Headline Inflation Rate 3||4.9 (Aug21)||4.1||2.4|
|Industrial/ Manufacturing Production Growth Rate 3||-2.8 (Dec20)||-8.6||-7.3|
|Merchandise Export Growth 3||17.6 (Jun21)||17.6||30.8|
|Exchange Rate Index 4||95.7 (Aug21)||95.4||93.0|
|1 Monthly average, local index.|
3 y-o-y, %.
4 Monthly average, January 2006 = 100, $/local currency.
|Source: Bloomberg LP; CEIC database; Philippine Statistics Authority; National Statistics Office.|
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