Economy gets booster shot
Corporate profits will improve substantially this year, especially with the expected arrival of vaccines
Rollout of anti-coronavirus disease 2019 (Covid-19) vaccines started yesterday with the delivery of 600,000 doses of Coronavac and an almost equal amount of sera from British-Swedish drug maker Astra Zeneca later will fire up the local bourse, according to market players.
Health Secretary Francisco Duque III said the World Health Organization had advised the government that the arrival of the Astra Zeneca shots will be delayed by a week.
PSE president and CEO Ramon Monzon expressed confidence that corporate profits will improve substantially this year, especially with the expected arrival of vaccines.
Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the biggest Association of Southeast Asian Nations economies of Indonesia, Malaysia, the Philippines, Singapore, and Thailand are projected to post a rebound this year “though downside risks continue to dominate.”
He attributed strong expectations of a rebound to “improved global economic growth prospects and country-specific improvements as a result of vaccine developments and sustained fiscal policy support.”
Hopes high for reopening
Rizal Commercial Banking Corp. chief economist Michael Ricafort said “going forward, any further measures to reopen the economy, especially the proposed MGCQ (modified general community quarantine) nationwide with the arrival of the Covid-19 vaccines and its eventual roll out, would result to higher tax revenue collections.”
He added that the start of inoculations will increase business and economic activities that could help reduce or temper budget deficits.
Ricafort noted the effects on the fiscal situation could be offset by any reduction in tax revenue collections and any additional government spending for additional programs such as for Covid vaccine purchases.
“The budget deficit as percentage of GDP (gross domestic product), however, turned out to be lower than programmed, at 7.6 percent of GDP, amid disciplined fiscal stance in view of limited government funds for any additional economic or fiscal stimulus measures,” he explained.
Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the biggest Association of Southeast Asian Nations economies of Indonesia, Malaysia, the Philippines, Singapore, and Thailand are projected to post a rebound this year.
The Philippine Stock Exchange index (PSEi) ended the week up and the peso barely moved on Friday due to correction. The main equities index ended the trade at 6,794.86 points, up by 0.58 percent or 38.91 points. All Shares rose by 0.49 percent, or 20.14 points, to 4,120.30 points.