Connect with us

Hi, what are you looking for?

Economy

Return to strict lockdowns to hurt recovery — Chua

THE GOVERNMENT will avoid reimposing strict quarantine measures even if the number of coronavirus disease 2019 (COVID-19) infections surge, in order to sustain economic recovery throughout 2021, Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said on Wednesday.

“There must be no reversal in quarantine because when we were already in GCQ (general community quarantine) in July tapos bumalik sa (and then we went back to) MECQ (modified enhanced community quarantine) in August, it created so much uncertainty,” Mr. Chua said in an online briefing on Wednesday.

“If cases do worsen, our suggestion is to do localized quarantines and enforce the minimum health standards better,” he added.

To recall, Metro Manila and nearby provinces returned to a MECQ for two weeks in August to heed medical frontliners’ call for a “timeout” amid a surge in COVID-19 cases.

Gross domestic product (GDP) contracted by 11.5% in the third quarter, worse than expected but better than the 16.9% contraction in the second quarter.

In September, net inflows of foreign direct investments slid 12.3% to $523 million year on year, which the central bank attributed to the MECQ that dampened investor sentiment.

The IHS Markit Philippines Manufacturing Purchasing Managers’ Index also dropped to 47.3 in August from 48.4 in July, below the 50-mark that separates growth from contraction. IHS Markit attributed the steeper decline to the heightened restriction measures which affected production.

“Those businesses who have started to open businesses, that have started to open the inventory and rehired workers, suddenly they were not allowed to operate, they were unsure then when they could return,” Mr. Chua said, referring to the two-week MECQ in August. 

As some Western economies are tightening restrictions to curb the surge in coronavirus infections, Mr. Chua said this is different from the situation in the Philippines.

The Philippines has 452,988 COVID-19 infections as of Wednesday, of which 24,873 are active cases. The number of active cases in the Philippines are lower than the over 500,000 and 351,000 active cases in Germany and Czech Republic, respectively. Germany will only keep essential shops open from Dec. 16 until Jan. 10, while Czech Republic is also shutting restaurants and hotels starting Dec. 18.

“Our recommendation is to treat it [lockdown] as a last resort… because it harms the economy, people’s jobs and income,” he said.

Mr. Chua said he expects the country’s GDP to grow starting the first quarter of next year given the policies of the government. He acknowledged, however, the need to “do more” given other Southeast Asian economies recorded single-digit contractions in the third quarter, as they managed to keep the coronavirus outbreak under control.

The government is expecting GDP to shrink by 8.5-9.5% this year before growing by 6.5-7.5% in 2021. — LWTN

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

By Jenina P. Ibañez, Senior Reporter PHILIPPINE MANUFACTURING activity rose to an eight-month high in November, as new orders increased for the first time...

Economy

THE NATIONAL Government’s outstanding debt swelled to P11.97 trillion as of the end of October as it offered more domestic securities, preliminary data from...

Economy

MOTORISTS experience heavy traffic along Commonwealth in Quezon City on Wednesday. — PHILIPPINE STAR/ MICHAEL VARCAS BANGKO SENTRAL ng Pilipinas (BSP) Governor Benjamin E....

Economy

THE SENATE on Wednesday approved on third and final reading the proposed P5.024-trillion national budget for 2022. Senators unanimously passed the 2022 General Appropriations...

Economy

EVERYTHING’s coming full circle from the boy from Cebu who wanted to write but ended up cooking. Myke “Tatung” Sarthou, celebrity chef, started out...

Economy

1 of 6 THE VIRTUS awards by the Hotel Sales and Marketing Association (HSMA) Philippines continues to honor professionals and institutions in hospitality: a...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.