MANILA – Malacañang remains optimistic that the Philippines can soon recover after it officially entered a recession with a 16.5 percent economic plunge in the second quarter due to coronavirus disease 2019 (Covid-19) related lockdowns.
Presidential Spokesperson Harry Roque said that while a contraction in the country’s gross domestic product (GDP) is expected, he was "concerned” that the drop is “much worse” than what the government’s economists predicted.
Economic managers earlier estimated the country’s GDP to have a much “deeper” contraction compared to the first quarter.
Despite this, Roque said economic managers have put together an economic recovery program dubbed as “PH-Progreso” or the “Philippine Program for Recovery with Equity and Solidarity”, to save the economy from collapsing.
He said the government has also recalibrated the budget for 2021 and restarted the Build, Build, Build infrastructure programs, subject to health and safety protocols, to create jobs.
“Our resolve to recover at the soonest possible, however, remains strong. Ingat buhay para sa hanapbuhay (Protect life for livelihood) is our battlecry,” he said in a statement on Thursday.
According to Roque, the public should also take into consideration that the Philippines is not the only nation facing an economic crisis.
“Covid-19 has had an adverse economic impact on countries like Singapore, Indonesia, the United States, France, Spain, Mexico,” he said.
He recognized the hardships of Filipinos, especially low-income families, noting that the government provided an emergency subsidy program after it decided to impose lockdowns across the country.
Citing the Philippine Statistics Authority (PSA), Roque said the main contributors in the decline were the decline in manufacturing, construction, and transportation and storage sectors that were greatly affected by the lockdowns.
He, however, said the Palace expects an improvement in the performance of these sectors during the second semester of the year, with gradual reopening of the economy and the proposed Bayanihan to Recover As One or Bayanihan 2.
Meanwhile, Roque urged Congress anew to fast track the passage of the Bayanihan 2 which would boost the second semester offensive against Covid-19.
Roque also urged the legislative to pass the Corporate Recovery and Tax Incentives for Enterprises or CREATE Act to help businesses recover and generate employment for our people.
He also assured the public that the government will continue working round the clock to strengthen resilience and restore the economy.
Health and safety first
In a separate statement, Presidential Communications Operations Office (PCOO) Secretary Martin Andanar said that despite the economic slump, the country is in a “much stronger” position to address recession in the long-term.
“Apart from strong economic foundations established by the successful enactment of economic, social, and institutional reforms, we continue to capitalize on and to reform our socio-economic advantages so that we can weather any potential, foreseen, and unforeseen crisis, such as the Covid-19 pandemic,” he said.
Andanar said the government will continue to strike a balance between supporting the economy while ensuring everyone’s protection, especially that of the country’s healthcare workers.
“We firmly believe that we will heal and rise again,” he said.
He also pointed out that lockdowns, which severely affected the economy, were imposed because the government prioritized the health and safety of all citizens.
“Although our lockdown and community quarantine implementation had an impact on our economic performance, it served as a cushion to our society’s general health, protection, and well-being against Covid-19,” Andanar said.
He said that it also served as a “safety net” to suppress the collapse of the healthcare system and assist the healthcare workers, who have been on the frontline of the ongoing health crisis.
“Due to this undertaking, we have prevented an estimated 1.3 to 3.5 million cases, of which an estimated of 68,000 severe and critical cases at a peak day, which would have overwhelmed our healthcare system. More importantly, some 59,000 to 171,000 lives were saved,” he said.
The Philippine Statistics Authority (PSA) on Thursday announced that the country’s GDP contracted at a record pace of 16.5 percent year-on-year from April to June, falling deeper into contraction after a revised 0.7 percent slump in the first quarter.
PSA noted the second quarter contraction was the lowest since it began tracking quarterly growth based on the 1981 series. (PNA)
