Inflation was low and stable. Our external payments position was robust, gross international reserves were at a record-high, debt-to-GDP was low, public finances was healthy, and macroeconomic performance was positive. Philippine banks continue to be well-capitalized, stable, and well-functioning across all metrics. But no one could have imagined the impact of COVID-19.
GDP growth declined slightly by 0.2 percent in the first quarter of 2020. It is the first negative real GDP growth since 1998’s El Nino and the Asian Financial Crisis. The government imposed a lockdown in an effort to curb the transmission of the disease. This, however, comes with a price.