Economic recovery is likely to start by the fourth quarter, with growth seen in key sectors such as agriculture, construction, and manufacturing, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said.
Despite the easing of lockdowns and resumption of business activity, Diokno still expects a GDP contraction, albeit slower, in the third quarter.
Diokno said, “I think the recovery will start in the fourth quarter. I think economic contraction could persist until Q3, although at a slower pace compared to the second quarter as business operations gradually resume.”
The economy contracted by 0.2% in the first quarter of the year, weighed down by the Taal eruption, the coronavirus outbreak and the subsequent lockdown.
The second quarter is expected to be worse, with the economy seen slipping into a recession, which is defined as two straight quarters of negative economic growth as measured by gross domestic product.