Hanoi (VNA) – ThePhilippine economy shrank by more than expected in the first quarter of 2021,supporting views that the central bank will keep interest rates at a record-lowat a policy meeting slated for May 12.
The Philippine statisticsagency revealed on May 11 that gross domestic product fell 4.2 percent in the firstquarter against the same period last year, marking the fifth straight quarterof declines amid pandemic-induced lockdowns.
Economists had expectedthe GDP to contract 3 percent in this quarter.
Among the majoreconomic sectors, agriculture declined by 1.2 percent while services andindustry contracted by 4.4 percent and 4.7 percent, respectively.
On the demand side,household consumption shrank 4.8 percent, but government spending grew 16.1percent.
The economy's performance,however, grew 0.3 percent from the previous quarter on seasonally adjustedterms.
Secretary of theNational Economic and Development Authority Karl Chua said at a briefing that thecountry's strong economic position before the pandemic and improving economicdata in recent months show that the country’s economy is on the mend.
The Philippine centralbank is projected to keep its benchmark interest rate unchanged at a record lowof 2.0 percent for the rest of 2021, despite high inflation breaching its 2-4percent target band./.
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