Solon urges proactive stance in mitigating COVID-19 impact on the country’s economy

Philippine economic managers must brace for the worst as the coronavirus (COVID-19) crisis continues to severely impact Philippine trade and industry, Valenzuela 1st District Representative Wes Gatchalian said

Gatchalian, who chairs the House Committee on Trade and Industry, warned of the dire consequences the COVID-19 would have on the Philippine economy should the disease become a pandemic.

“The increasing number of COVID-19 cases being reported all over the globe are a serious cause of concern and our economic managers must prepare for a pandemic scenario. We need to prepare and have contingencies in place,” Gatchalian said.

The World Health Organization last week hinted on the possibility of a COVID-19 pandemic as it issued a grim warning on the chances of containing the virus saying the window of opportunity was “narrowing” amid increasing number of cases in outbreaks in South Korea, Iran, and Italy.

Meanwhile, during the recent joint hearing of the Committees on Economic Affairs and Trade & Industry to assess the impact of the COVID-19 on the Philippine economy, the Department of Trade and Industry (DTI) revealed that several industries have already been impacted by the flight and travel restrictions to and from mainland China, particularly the electronics, autos and auto parts, and pharmaceutical industries.

The DTI reported that the supply of electronic parts and components from China has tightened amid the lack of air cargo space, limited flights, and the imposition of the travel ban. Meanwhile, several auto hubs in Wuhan, the epicenter of the COVID-19 epidemic, have shutdown due to the lockdown. The lockdown has also deferred production and deliveries of pharmaceutical companies.

“I am glad that the DTI has been keeping a close eye on the effects of the coronavirus. But more than monitoring, we must also be proactive in mitigating the brunt of its impact,” Gatchalian said.

During the hearing, the Valenzuela lawmaker also asked the Board of Investments whether the Chinese-funded projects under the “Build, Build, Build” Program of the government were affected by the imposition of the travel ban since these projects have hired engineers, architects, and other specialized skilled workers from China and other countries.

“There is now a need to revisit economic growth targets for 2020 due to the continuing COVID-19 crisis,” Gatchalian said, adding that even tourism in the country has taken a hit.

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