Senators warn COVID-19's economic effects will be felt for years, suggest ways to gradually move forward
By Vanne Elaine Terrazola
It might take two to three years for the Philippine economy to fully recover from the effects of the COVID-19 pandemic.
This was the estimate of Senate President Pro Tempore Ralph Recto, who warned of a “deep recession” due to the novel coronavirus outbreak, which has affected 185 countries to date.
“I expect a full recovery in two to three years. Confidence will be back when there is a cure or a vaccine. prepare for a deep recession or depression,” the former socioeconomic planning secretary said in a text message.
While he expressed confidence that “we will beat the virus,” he said the government should “expect the problem to linger for two years.”
With this, he said the government should work on preparing and improving the country’s hospitals, as well as provide assistance to small businesses and workers displaced by the quarantine measures imposed to curb the spread of the COVID-19.
The former National Economic and Development Authority chief likewise said the administration should restart the economy wisely.
“Open the economy smartly. Allow people to start working and to care for their families. Invest in growth areas etc.,” Recto said.
Meanwhile, Sen. Cynthia Villar recommended the opening of labor-intensive sectors such as agriculture, manufacturing, and construction amid the pandemic.
She expressed concerns that the extension of the enhanced community quarantine (ECQ) in Metro Manila and other high-risk areas is already taking a toll on the employment of poor and lower-middle class sectors of the country.
While saying the agriculture sector is in full swing, Villar noted that some allied industries have limited operations or have already ceased operations, displacing food manufacturing workers and affecting the supply of food in the markets.
“With the extension of the ECQ for another half a month, we need to intensify food production as well as ensured the unimpeded flow of fresh produce and food products all over the country,” Villar said in a statement.
Those employed in the construction and manufacturing sectors, who are mostly daily-wage earners, are likewise adversely affected, she added.
“They have no source of income while on ECQ. While the government and companies may have extended financial assistance and relief goods, those will not be enough,” Villar pointed out.
The administration lawmaker said the government should put in place “more realistic and sustainable measures” for these workers, to prevent possible peace and order problems arising from hunger and unemployment.
Villar said agriculture comprises 22 percent of workers in the country, while 10 percent are in manufacturing, and another 10 percent are in construction.
Finance Secretary Carlos G. Dominguez III earlier said the COVID-19 might result to a “zero to negative 1-percent” Philippine economic growth this year, as businesses, especially in the tourism and retail sectors, have been hit hard by the public health crisis.
The government’s tax collections have also slowed down by the quarantine measures imposed to curb the spread of the disease.