GDP declines by 11.4% in Q3

MANILA, Philippines — The economy contracted at a marginally slower pace in the third quarter last year than initially assessed as adjustments were made in real estate, education and other services, the Philippine Statistics Authority reported yesterday.

Gross domestic product (GDP) in the third quarter was revised to register a decline of 11.4 percent, slightly slower than the 11.5 percent drop based on preliminary data.

The PSA said slower declines were seen in the output of real estate and ownership of dwellings, from 22.5 percent to 19.4 percent; education, from 21.4 percent to 17.8 percent; and other services, from 53.4 percent to 49.9 percent.

Net primary income from the rest of the world was revised from a decline of 28.2 percent to 29 percent, while the contraction in gross national income (GNI) was maintained at 13 percent for the third quarter.

The PSA revises the GDP estimates based on an approved revision policy consistent with international standard practices on national accounts revisions.

The agency will report the economic performance in the fourth quarter, as well as the full-year 2020 performance today.

The economy declined at a slower pace in the third quarter coming from the downward revised contraction of 16.9 percent in the second quarter, a record slump.

It is widely expected that the contraction would be even slower in the fourth quarter as more businesses resumed operations and holiday spending gave consumption a boost.

In the three quarters of 2020, the economy is seen to have shrunk by an average of 10 percent as the prolonged quarantine limited the movement of people as well as economic activities.