PSA revises Q2 GDP downward to -16.9%

The Philippine economy performed worse than earlier reported in the second quarter given revisions concerning trade, real estate, and financial insurance activities, the government reported.

The Philippine Statistics Authority (PSA) on Tuesday revised the second-quarter growth rate to -16.9%, a wider contraction than the earlier reported -16.5%.

Major contributors were the revisions in real estate and ownership of dwellings to -29.7% from -20.1% reported in August; wholesale and retail trade; repair of motor vehicles to -13.9% from -13.1%; and financial and insurance activities to 5.4% from 6.8%.

The PSA also revised the gross national income (GNI) to -17.3% in the second quarter from -17.0%, but reported an upward revision for the net primary income (NPI) to -12.7% from -22.0%.

Third-quarter figures are scheduled to be released on Tuesday, November 10, 2020.

For the full-year 2020, economic managers are expecting the economy to contract by as much as 5.5%, taking in the effects of the community quarantines set in place since March to curb the spread of COVID-19.

Just last week, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said the economy is expected to post a contraction this year, start its recovery in 2021, and return to pre-pandemic levels in 2022. — RSJ, GMA News