The Philippine economy is slowly recovering from the impact of COVID-19 as more establishments and transportation are going back to business and employment resumes.
The Philippine Statistics Authority (PSA) reported that the gross domestic product (GDP) of the country for the third quarter of 2020 eased to -11.5% or an 8% improvement from the -16.9% figure in the second quarter.
The GDP in the second quarter of 2020 is the lowest since 1981. The agriculture, industry, and services sectors have also recovered from the negative territory compared to the previous quarter. However, a slowdown in construction and household consumption has affected the economy’s recovery.
“Starting October, the cabinet has approved policy to open up more the economy. The DTI has issued guidelines opening the economy from 75% to 100%. We have also opened the public transportation system. These two are crucial in improving the prospects in the fourth quarter,” acting National Economic and Development Authority (NEDA) Secretary Karl Kendrick Chua explained.
Malacañang also described the latest GDP, although still a negative figure, as an improvement from the dip last quarter.
“Bahagyang umangat na po ang ating ekonomiya, na nagpapatunay po na the worst is already over. (Our economy has slightly improved which is a proof that the worst is already over),” Presidential Spokesperson Harry Roque stated.
RCBC Chief Economist Michael Ricafort said “the Philippine GDP is still better” compared with India’s -24%, Malaysia’s -17%, and Thailand’s -12%. To maintain recovery, the economic team of the administration urged Congress to pass pending recovery bills, the 2021 budget, the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) bill, Financial Institutions Strategic Transfer (FIST) bill, and Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) Act.
The House of Representatives has already been instructed to prioritize 12 bills “that were endorsed by Secretary Sonny Dominguez as part of the legislative priorities of the Department of Finance.”
“Once these measures are approved by the Senate and enacted into laws, we expect the Philippines to keep its status as one of the emerging economies in the world in terms of financial strength and economic resilience,” House Majority Leader and Leyte Rep. Martin G. Romualdez assured. – Report from Naomi Tiburcio
