The greatest recession

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Photo from: Canva.com

By: Tony Lopez, Manila Standard

The economy slumped in the first quarter of 2020. Production of goods and services, what we call Gross Domestic Product or GDP during January-March this year, declined by 0.2 percent, in real terms, or minus the effect of inflation.

This is the first and steepest drop in production since 1998, ending 84 quarters or 21 years of frenetic growth, the longest economic expansion in the country’s history.
The economic collapse is likely to extend into the second and third quarters of 2020. Thus, we have the grim prospect of having the Greatest Recession ever.

The only way to stop that economic Armageddon is to revive the economy, dead for the last 50 days. Revival means lifting the so-called Enhanced Community Quarantine (ECQ) or even the GCQ on Luzon and key cities in the Visayas and Mindanao. These areas account for more than 75 percent of economic production.

 

Read the full column HERE.