Friday, August 07, 2020

The PH's Q2 2020 GDP meltdown

The Philippines experienced technically an economic meltdown in the second quarter (Q2) this year with a -16.5% GDP contraction, the lowest since 1981. The country is also in a recession having a two consecutive quarterly contraction -- along with SG, HK, and many EU countries. 

The virus did not cause this. All countries have their own share of virus infections. It was the PH government's hard lockdown policies that started in March 16 up to the present. See 
Covid 16, Philippines having the strictest lockdown policies in the world (July 28, 2020). 

In Europe, notice also that no-lockdown Sweden has (a) escaped contraction in Q1, and (b) lowest contraction in Q2 compared to its hard-lockdown neighbors.

Here's the PH's GDP quarterly performance, data from the PH Statistics Authority (PSA).

The endless, indefinite lockdown should stop. Mr. President, open up the economy.

We can learn from Sweden -- no lockdown, only the oldies and immuno-compromised people were protected and quarantined, the healthy and young can go out anytime. Shops and schools, restaurants and bars, churches are open; trains and buses go. Social distancing is limited to 50 people max in a gathering.

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