section_path: Impact by region or country/Asia-Pacific/Philippines
section_name: Philippines
paragraph_text: Philippines
  
  The Philippines' real GDP contracted by 0.2% in the first quarter of 2020, the first contraction since the fourth quarter of 1998, a year after the 1997 Asian financial crisis. The economy slipped in technical recession after a 16.5% decline was recorded in the second quarter.
  
  The government projects that the GDP will contract by 5.5% in 2020. The First Metro Investment Corp projects a year-on-year GDP decline of 8–9%. The decline is led by a decrease in household spending which typically accounts for 70% of the country's GDP and hesitancy on spending due to COVID-19 community quarantine measures.
  
  In its annual economic performance report released on 28 January 2021, the Philippine Statistics Authority reported that the Philippines' GDP contracted by 9.5% in 2020, its worst contraction since World War II. The last full-year contraction was during the 1997 Asian financial crisis where the GDP grew by −0.5%. The 2020 contraction was also worse than the 7% contraction in 1984.