The country’s economic managers are revisiting their macroeconomic projections, Finance Secretary Carlos Dominguez 3rd said, after the Palace extended the general community quarantine (GCQ) in Metro Manila.
“I don’t know if it will deepen the recession, it probably will level it off, but certainly it will not pull us up,” Dominguez told reporters on Thursday when asked about the economic impact of the GCQ extension in the National Capital Region (NCR).
On Wednesday night, Presidential Spokesman Harry Roque announced that President Rodrigo Duterte decided to retain the general community quarantine in the NCR until the end of the month.
To recall, Dominguez has been pushing for a more relaxed community quarantine in Metro Manila to encourage more economic activities.
“We are currently reviewing the emerging figures,” he replied when asked further if the government’s economic forecasts are still appropriate given the latest developments.
To recall, the Development Budget Coordination Committee (DBCC) has revised the country’s macroeconomic indicators and fiscal program for this year until 2022 to reflect the government’s priorities of saving lives and protecting communities, while providing support to vulnerable groups and stimulating the economy to create jobs and support growth amid the coronavirus disease 2019 pandemic.
In particular, inter-agency body is now seeing the country’s gross domestic product (GDP) contracting by 2.0 to 3.4 percent this year as National Economic and Development Authority estimates suggest that the potential impact of the pandemic on the economy could reach P2.0 trillion, or about 9.4 percent of GDP this year.
To contain the spread of the virus in the country, the government has imposed different forms of community quarantine in various areas in the country since March 17, more than two months after the Philippines’ first confirmed case was reported.
This dragged the Philippine economy to fall by 0.2 percent in the first quarter of the year.