With the National Capital Region and 38 other areas shifting to Alert Level 1, the National Economic and Development Authority (NEDA) said it was expecting the economy to finally start recovering its losses due to the pandemic.
According to NEDA Director-General Karl Chua, the Philippine economy was expected to earn P25.3 trillion, but due to the pandemic, it is now only expected to earn around P21.5 trillion, a difference of P3.8 billion.
Of this amount, household income accounts for P1.3 trillion, corporate income at around P2.2 trillion, while indirect taxes are at P300 billion.
“Pero as the economy bounces back, we have to recover all the losses in the past 2 years. ‘Yung total amount na nawala sa atin ay P3.8 trillion (We lost a total of P3.8 trillion),” Chua said in a taped public briefing aired late Monday.
Chua also welcomed the decision to shift to Alert Level 1, noting that it can further benefit the economy.
With 39 areas under Alert Level 1, the NEDA said it will benefit 62 percent of the economy, and 48 percent of workers.
This also translates to P9.4 billion more per week of economic activity (gross value-added terms), P3 billion more in salaries per week, and 170,000 less unemployed over the next quarter.
Should the whole country be placed to Alert Level 1, the benefits will increase to P16.5 billion more per week of economic activity, P5.2 billion more in salaries and 297,000 less unemployed over the next quarter.
Chua said the tourism industry, which lost an estimated P1.5 trillion in 2020, can recover P750 billion with the shift to Alert Level 1.
With only a few months left in President Rodrigo Duterte’s term, Chua laid down their proposed 10-point policy to accelerate and sustain economic recovery in 2022 and beyond, which includes the following:
1. Focus on severe COVID-19 cases and death
2. Vaccination
3. Healthcare capacity
4. Economy and mobility
5. Schooling: open face-to-face fully
6. Domestic travel
7. International travel
8. Digital transformation
9. Pandemic flexibility bill
10. Medium-term preparation for pandemic resilience
“Para pagtapos po ng termino ninyo, mahal na Pangulo, ay malakas na ekonomiya ang ipapamana natin sa susunod na administrasyon,” Chua said.
(So that by the end of your term, we will be leaving behind a strong economy for your successor.)
Metro Manila and 38 other areas will be placed under Alert Level 1, the least restrictive in a 5-tier COVID quarantine system, beginning March 1, triggering guidelines for the “new normal”.
Under Alert Level 1, businesses and public transportation will be allowed to operate at 100 percent capacity. Proof of vaccination will also be required upon entry to indoor establishments or participation in mass gatherings.
The Philippines reported 951 new COVID-19 cases, the first time this year the tally fell below 1,000.
