Manila Standard - 2020 August 7 - Friday

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Recession as GDP nosedives Pandemic sends economy plunging by 16.5% to a 39-year low

Palace upbeat on recovery from slump

By Julito G. Rada

T

HE COVID-19 pandemic has pummeled the economy into a recession—its first in three decades--as gross domestic product (GDP) fell by 16.5 percent in the second quarter after declining 0.7 percent in the first three months, the Philippine Statistics Authority (PSA) said Thursday.

VOL. XXXIV • NO. 164 • 3 SECTIONS 12 PAGES • P18 • FRIDAY, AUGUST 7, 2020 • www.manilastandard.net • mst.daydesk@gmail.com

By Darwin G. Amojelar, Othel V. Campos and Macon Ramos-Araneta MALACAÑANG remains optimistic that the Philippines can soon recover after it officially entered a recession with a 16.5 percent economic plunge in the second quarter due to COVID19-related lockdowns. Presidential spokesman Harry Roque said that while a contraction in the country’s gross domestic product (GDP) is expected, he was concerned that the drop is “much worse” than what the government’s economists predicted. Despite this, Roque said, economic managers have put together an economic recovery program dubbed as “PH-Progreso” or the “Philippine Program for Recovery with Equity and Solidarity”, to save the economy from collapsing.

National Statistician Dennis Mapa said this brought the contraction to 9 percent for the first half, the steepest decline among ASEAN economies. In the same period, Thailand’s economy contracted 6.5 percent while Malaysia’s shrank by 3.9 percent. The second quarter decline was the worst since records began in 1981. As a result of the poor first half, the government is now looking at a fullyear GDP contraction of 5.5 percent. PSA data showed that the main contributors to the decline were manufacturing, -21.3 percent; construction, -33.5 percent; and transportation and storage, -59.2 percent. Among the major economic sectors, only agriculture, forestry, and fishing increased with 1.6 percent growth. In-

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PH cases near 120,000, top Indonesia tally

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WORST IN 39 YEARS. Measured in terms of the gross domestic product, the economy fell by 16.5 perent in the second quarter of 2020, the lowest since 1981. Source: PSA

By Willie Casas, Vito Barcelo and Maricel V. Cruz THE Philippines on Thursday overtook Indonesia as the epicenter of COVID-19 in Southeast Asia after the Department of Health (DOH) reported 3,561 new cases, raising the total to 119,460. Indonesia logged 116,871 infections as of Wednesday with an average of 1,850 new infections reported daily in the past seven days. This marks the eighth consecutive day during which more 3,000 new cases were reported. Of the 3,561 reported cases, 2,023 are fresh and 1,538 were reported late. Next page

BAYANIHAN 2. House Majority Leader and Co-Chairman of the Defeat COVID-19 Ad-Hoc Committee (6th from

left) Martin Romualdez, together with deputy majority leaders, deputy speakers and minority leaders flash the ‘One Sign’ late Wednesday night at the plenary of the House of Representatives after approving on second reading HB 6953 or Bayanihan to Recover as One Act, providing for Covid-19 response, and recovery interventions. Ver Noveno

LOCAL ROUNDUP

• Virus hot spots: Canteens, hubs • Bed policy By Willie Casas and Joel Zurbano PREPONDERANT PETITIONS. Concerned Lawyers for Civil Liberties led by former Vice President Jejomar Binay (3rd from left) on Thursday, August 6, 2020 filed a petition challenging the legality of the Anti-Terrorism Act of 2020 before the Supreme Court. Theirs becomes the 25th petition against the ATA which has taken effect on July 18, 2020. Norman Cruz

24 Filipinos hurt in Beirut blast By Rey E. Requejo

THE Department of Foreign Affairs on Thursday said the number of Filipinos injured in the powerful explosion that struck Beirut, Lebanon, killing at least 137, last Tuesday had risen to 24. Foreign Undersecretary Brigido Dulay said most of the injured were house-

hold service workers. Reports reaching Manila, quoting Lebanon’s health minister said at least 5,000 we wounded in the explosion that shook Beirut, with hundreds reported still missing, raising fears the death toll would rise. At the same time, the reports said Next page

PhilHealth funds dwindle, exec quits By Julito Rada, Macon Ramos-Araneta and Willie Casas FINANCE Secretary Carlos Dominguez III said Thursday the controversial state insurer Philippine Health Insurance Corp. “may run out of money” by late 2021 or in early 2022 due in part to the agency’s inability to make secure projections of its fund life

because of a poor information system. Dominguez made his statement even as PhilHealth Vice President for Operations Augustus De Villa on Thursday tendered his “irrevocable resignation” for reasons still unknown. De Villa did not cite any reason for his resignation, but he vowed to cooperate with the congressional investigations on the alleged irregularities in the Next page

CANTEENS, smoking areas, and other “spots of convergence” in workplaces were found to be sources of “great contamination” for COVID-19, Task Force Chief Implementer Secretary Carlito Galvez Jr. said Thursday. Workplaces, particularly in Metro Manila, Bulacan, Laguna, Cavite, and Rizal, were also guilty of a “great violation” of minimum health standards such as physical distancing, the chief implementer of the country’s pandemic response strategy said. “We saw that the most critical areas right now are the workplace, in what

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Europe tightens up as virus 2nd wave looms EUROPE tightened virus restrictions to face the threat of a second wave of COVID-19 as the worldwide death toll crossed 700,000. Several European countries and cit- and new face mask and quarantine ies reimposed tighter restrictions, in- rules elsewhere. cluding a “wake-up week” in Greece A total of 703,640 deaths have been re-

WORLD ROUNDUP

corded so far around the world, according to an AFP tally compiled from official sources as of 0300 GMT Thursday. Europe remains the hardest-hit region with 211,764 fatalities, but the number of deaths is rising fast in Latin America, Next page

SOLIDARITY. Israelis take a stroll past the city hall in the coastal city of Tel Aviv on Aug. 5 2020, lit up in the colors of the Lebanese national flag in solidarity, a day after a devastating blast at the port of Lebanese’s capital, in Israel’s latest gesture toward a country with which it is technically at war. AFP


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