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COVID-19 pandemic and community quarantine measures imposed in the country have severely impacted economic growth and poverty reduction. Growth contracted significantly in 2020, driven by heavy declines in consumption and investment growth, and exacerbated by the sharp slowdown in exports, tourism, and remittances. Similarly, the previous trend in real wages, which is expected to have a positive impact on household incomes—particularly those from the lower income groups—has been severely hampered by the impact of the COVID-19, with negative consequences also for poverty reduction in the Philippines.
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