The Philippines Spirals into Recession Following Months-Long Lockdowns

The country's economic woes have been exacerbated by a drop in remittances from the legion of Filipinos working abroad who typically send money to their families every month, which fuels consumer spending — the main driver of growth.

Remittances dropped 6.4 percent in the first five months, compared with the same period last year, according to the central bank.

Thousands of seafarers, cleaners and construction workers have lost their jobs and returned home.

Consumer spending in the second quarter plummeted 15.5 percent, the statistics agency said.

"It will be a rough road to recovery as trade-offs between economic recovery and health will remain a big challenge to both the private and public sectors," said Emilio Neri, lead economist at Bank of the Philippine Islands.

(Writers & Editors: MFF/AMJ/DAN, Agence France-Presse) 

Source: http://u.afp.com/3B69