Gov’t casts lower GDP estimate

For the entire year, we project our economy to contract by about six percent. We have seen unemployment spike when the domestic economy was hindered by the lockdown

The country’s local output measured in gross domestic product (GDP), which was seen to decline for this year, could contract beyond the government’s current minus 5.5 percent estimate.

This was learned from Finance secretary Carlos Dominguez III as he cited a slightly lower GDP outlook for 2020, following the decision to revert Metro Manila along with nearby provinces to a much stricter quarantine measure in August.

“For the entire year, we project our economy to contract by about six percent. We have seen unemployment spike when the domestic economy was hindered by the lockdown,” Dominguez said.

“Our enterprises have borne the brunt of the economic downturn,” he added.

According to him, the Department of Budget and Coordination Committee’s current minus 5.5 percent GDP view is “under discussion” and might be revised in consideration of latest economic developments.

GDP for the first half of the year proved to be deeper than what was expected with minus nine percent, following the sharp 16 percent drop in the second quarter.

While at it, the Finance chief reiterated on the country’s strong fiscal position prior to the pandemic, which helped buttress the economy against shocks.

“It is fortunate that when the COVID-19 crisis hit, the Philippines was financially ready. Since 2016, we started building up our finances to support our aggressive infrastructure program designed to lift Filipinos out of poverty,” he explained.

Game-changing reforms

The Cabinet official likewise stressed that the game-changing reforms which were passed in the previous years helped boost the country’s “fiscal stamina” along with the strengthened revenue effort of income-generating agencies.

As such, Dominguez reassured that the Philippines has what it takes survive the crisis’ onslaught citing their expectation of a quick economic recovery for the country.

“We are confident that we will outlast this emergency. Next year, we expect the Philippine economy to post a strong rebound. The challenges are large but we are determined to build back a better economy that the Filipino people deserve,” he said.

PHOTOGRAPH COURTESY OF POND NEWS ASIA ROLLS of upholstery materials are temporarily placed near the corner of Borromeo and P. Lopez Streets in Cebu City where a worker starts hauling them into a retail establishment in the area.