The economy contracted 4.2% in the first quarter of the year, according to the latest data released by the Philippine Statistics Authority (PSA) on Tuesday.
Data showed the performance economy in the January to March period was an improvement from the contraction of 8.3% in the fourth quarter of 2020.
However, the first quarter GDP growth was worse than the 0.7% contraction recorded in the same period last year. The contraction this year is the worst recorded first quarter performance since 1985 when the economy contracted 10.5% in the January to March period.
“On a seasonally-adjusted quarter-on-quarter basis, the economy grew by 0.3 percent, suggesting the limit of growth unless we see a major relaxation of quarantine level,” Socioeconomic Planning Secretary Karl Kendrick T. Chua said in a briefing.
PSA said among the major economic sectors, Agriculture, Forestry, and Fishing (AFF) declined by -1.2% in the first quarter of 2021.
Further, Services and Industry contracted by -4.4% and -4.7%, respectively during the period.
On the demand side, Household Final Consumption Expenditure (HFCE) declined by -4.8%, along with the following items: Gross Capital Formation (GCF), -18.3%; Exports, -9.0%; and Imports, -8.3%.
The Net Primary Income (NPI) from the Rest of the World continued to decline by -75.8%, bringing the Gross National Income (GNI) to drop by -10.9% during the period.