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 closes in red at 10,709
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 138.89 points, or 1.28 percent, to close at 10,709.04.
The total trading turnover of the benchmark index was SR6.59 billion ($1.75 billion), as 102 of the listed stocks advanced, while 154 retreated.
The MSCI Tadawul Index decreased, down 22.40 points or 1.52 percent, to close at 1,450.58.
The Kingdom’s parallel market Nomu lost 123.85 points, or 0.54 percent, to close at 22,792.98. This came as 30 of the listed stocks advanced, while 40 retreated.
The best-performing stock was Al-Rajhi Co. for Cooperative Insurance with its share price surging by 9.96 percent to SR74.50.
Other top performers included Jazan Development and Investment Co., which saw its share price rise by 9.89 percent to SR8.33, and Gulf Insurance Group, which saw a 7.48 percent increase to SR23.
On the downside, City Cement Co. and Al Gassim Investment Holding Co. saw declines, with their shares dropping by 5.51 percent and 4.22 percent to SR11.50 and SR13.15, respectively.
On the announcement front, Almoosa Health Co. has signed a construction contract with Almajal Alarabi Group valued at SR608.85 million to complete the electrical, mechanical, and architectural finishing works for the new Almoosa Specialized Hospital in AlHofuf City.
The agreement, finalized on Feb. 26, covers all complementary internal and external works based on approved engineering designs to ensure the facility is fully operationally ready upon completion.
According to a Tadawul statement, work on the project will commence immediately, with an expected completion timeline of 16 months.
Almoosa Health intends to finance the development through a combination of its own resources and long-term Shariah-compliant facilities secured from local banks, with the financial impact anticipated to begin following the hospital’s completion and commissioning.
Almoosa’s share price surged by 4.24 percent to reach SR147.50.
