UPDATE 1-Philippine economy dives into recession in worst slump on record

(Adds details, graphic, comments)
* Q2 GDP shrinks 16.5% y/y, contracts 15.2% q/q
* Philippines suffers first recession in 29 years
* Philippine economy snapshot: http://tmsnrt.rs/2nZqDWx

By Enrico Dela Cruz and Neil Jerome Morales
MANILA, Aug 6 (Reuters) - The Philippine economy plunged by
much more than expected in the second quarter, falling into
recession for the first time in 29 years, as economic activity
was hammered by one of the world's longest and strictest
coronavirus lockdowns.
The Southeast Asian nation's economy shrank by 16.5% in
April-June from the same period last year PHGDP=ECI - the
biggest slump in the government's quarterly GDP data dating back
to 1981, the Philippine Statistics Authority said on Thursday.
Gross domestic product fell by much more than the 9%
contraction forecast in a Reuters poll and was worse than a
revised slump of 0.7% in the first quarter. Seasonally adjusted
GDP fell 15.2% in the second quarter from the first three months
of the year.
The economic hit from the pandemic could worsen with the
government reimposing tighter quarantine controls in the capital
Manila and nearby provinces for two weeks from Tuesday amid
resurging coronavirus cases. "The Philippine economy crash-landed into recession with the
2Q GDP meltdown showcasing the destructive impact of lockdowns
on the consumption-dependent economy," said ING senior economist
Nicholas Antonio Mapa.
"With record-high unemployment expected to climb in the
coming months, we do not expect a quick turnaround in
consumption behaviour, all the more with COVID-19 cases still on
the rise."
The Philippines main share index .PSI showed little
reaction to the data.
Some businesses have been ordered shut and movement
restricted again in Manila and nearby provinces, which accounts
for a quarter of the country's population and most of its
economic activity.
The Philippines recorded 115,980 confirmed infections as of
Wednesday, just behind Indonesia's 116,871 cases, which is the
highest in East Asia.
With inflation PHCPI=ECI expected to remain subdued
throughout the year, the central bank has room for further
policy easing if needed, analysts say. It has slashed the benchmark interest rate PHCBIR=ECI by a
total of 175 basis points this year to a record-low of 2.25%.