An economic collapse in the Philippines could require paying a lot more to keep the economy afloat.
The economy is in freefall as the country struggles to recover from Typhoon Haiyan, which hit in late August and left more than 11,000 dead and millions displaced.
The country is in a deep economic recession, according to economists.
The Philippines’ economy has shrunk by 7.2% this year compared with 5.4% last year, according a report released on Thursday by the McKinsey Global Institute, which surveyed more than 2,500 companies and industry executives.
It also said that in the first six months of 2018, the economy contracted by 2.5%, with a projected contraction of 4.1% this fiscal year.
The government said it expects the country’s unemployment rate to rise to 9.1%, its highest in 20 years, by the end of the year.
That would leave the economy in deep recession and raise the risk of another financial crisis.
The McKinsey report said that with the government spending only 2.3% of gross domestic product, it would be “virtually impossible” to keep growth in check and stimulate the economy with investment and hiring.
While the Philippines’ economic woes are affecting the entire country, the impact is particularly severe in the mining sector, where the government has been struggling to raise revenues.
It’s not clear how much of a hit it will have in terms of economic output.
The mining sector employs nearly half of the countrys workforce and accounts for more than 70% of the nations total gross domestic products.