MANILA: The Philippine economy shrank by more than expected in the third quarter from a year ago as the COVID-19 pandemic continued to batter the Southeast Asian country but a loosening of coronavirus curbs helped ease the pain.
Gross domestic product (GDP) shrank 11.5 percent, the statistics agency said on Tuesday, after a 16.9 percent slump in the second quarter when the economy entered its first recession in nearly 30 years. Economists in a Reuters poll had forecast a 9.8 percent year-on-year contraction.
GDP grew a seasonally adjusted 8 percent quarter-on-quarter, after a 14.9 percent contraction in April-June.
The government has gradually lifted coronavirus curbs since May after imposing one of the strictest lockdowns globally this year. But analysts worry about the Philippines’ outlook as it struggles to contain the virus at home, while a resurgence of cases abroad threatens the global economic recovery.
“The economic team is optimistic that the worst is over for the country,” said Acting Economic Planning Secretary Karl Chua, projecting a “strong bounce-back” in 2021.
The data showed household spending and investment continued to suffer while government spending slowed. Household spending fell 9.3 percent in the third quarter from the year before and investment slumped 37.1 percent over the same period.
“Improvements are likely to be harder to come by in the quarters ahead,” said Alex Holmes, Asia economist at Capital Economics. “With the virus still not under control, a further scaling back of containment measures will take longer.”
HSBC economist Noelan Arbis expected the central bank to keep rates steady for the rest of 2020, but ING senior economist Nicholas Mapa said the data could prompt a knee-jerk move.
The central bank cut interest rates by a total of 175 basis points this year while the government has launched $3.4 billion (165.5 billion pesos) worth of stimulus measures.
“With fiscal authorities pulling back on spending at a time we need it the most, monetary authorities may be compelled to trim rates but at this point, it may be the less effective response,” ING’s Mapa said.
Government spending rose 5.8 percent in the third quarter from a year ago, compared with a 21.8 percent surge in the second quarter.
The Philippines has the second-highest number of coronavirus cases and COVID-19 deaths in Southeast Asia.
Philippine economy shrinks by more than expected in Q3, but government says ‘worst is over’
https://arab.news/4h6r7
Philippine economy shrinks by more than expected in Q3, but government says ‘worst is over’
- Gross domestic product shrank 11.5 percent, the statistics agency said on Tuesday
- ‘The economic team is optimistic that the worst is over for the country’
Closing Bell: Saudi main index climbs to 10,485
RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Sunday, gaining 34.32 points, or 0.33 percent, to close at 10,484.59.
The total trading turnover of the benchmark index stood at SR2.59 billion ($690 million), with 168 listed stocks advancing and 87 declining.
The Kingdom’s parallel market Nomu also gained 100.37 points to close at 23,454.65.
The MSCI Tadawul Index advanced by 0.13 points to 1,377.44.
The best-performing stock on the main market was Nama Chemicals Co., whose share price increased by 9.98 percent to SR22.38.
The share price of Al Masar Al Shamil Education Co. rose by 9.15 percent to SR23.85.
Saudi Paper Manufacturing Co. also saw its stock price climb by 8.42 percent to SR57.95.
Conversely, the share price of Canadian Medical Center Co. dropped by 6.37 percent to SR6.03.
The stock price of Kingdom Holding Co. also declined by 3.16 percent to SR8.28.
In the parallel market, Alfakhera for Mens Tailoring Co. was the top performer, with its share price advancing by 16.40 percent to SR8.80.
On the announcements front, Theeb Rent a Car Co. said it had signed a long-term vehicle leasing services contract valued at SR110.4 million with Hungerstation Co.
Under the deal, Theeb will lease 2,000 vehicles to HungerStation for a period of four years starting from 2026, according to a Tadawul statement.
The statement added that the vehicles will be delivered in batches within the first six months from the contract start date, taking into consideration global logistical circumstances and procedures beyond the control of both the agents and the company.
The contract is expected to have a positive impact on the company’s financials from the first quarter of 2026.
The share price of Theeb Rent a Car Co. declined by 0.79 percent to SR37.80.
