The illusion of 11.8% GDP growth
The 11.8% increase in the gross domestic product (GDP) of the Philippines during the second quarter of the year is only a rebound from the worst levels. The figure is relative to the 17% GDP decline during the same quarter of the same year, making the slight growth appear bigger. The 2nd quarter GDP growth appears big but is, in fact, only 0.7% higher than the first quarter of the year. It further decelerated by -1.3% during the second quarter. Ibon Foundation projected that the regime will fail to sustain this “bounce” in GDP without resolving the widespread problem of unemployment, low quality jobs, decline or absence of income and financial assistance
At the same time, share of the agricultural sector dropped by 3.3% and 1.5% during the first and second quarter of the year. This is a result of combined measures to fully liberalize the importation of meat and rice, the absence of production subsidy for farmers, the absence of subsidy for farmers, as well as travel restrictions which both affect producers and buyers.