Philippines needs $32 billion to restart economy


The Philippines is in need of 1.56 trillion pesos (approximately $32 billion) to kickstart a recovery from a record economic contraction caused by the coronavirus pandemic, according to Stella Quimbo, co-chair of the panel on economic stimulus in the House of Representatives.

The focus of the financial support should be on wage subsidies and low-interest loans for small businesses, an important economic sector which employs more than 60 per cent of Filipino workers, she said.

“Most of all, It is the drop in consumption that is causing the contraction,” Quimbo said, adding that “if we don’t address the loss of jobs and people don’t have money, how do we recover? The government has to spend so that confidence comes back.”

The Philippines plunged into a recession last quarter after several lockdowns were imposed across the country in order to contain the pandemic, which was followed by record job losses that slashed gross domestic product. As a result, the government revised its economic forecast for this year to a 5.5 per cent contraction, compared with a previous estimate of a 3.4 per cent decline and said that it was unable to fund the 1.3 trillion-peso ($26.6 billion) stimulus package approved by the Congress in June.

Just 655 billion pesos allocated since March to mitigate the economic contraction

According to teh Philippines’ economic planning secretary Karl Kendrick Chua, just 655 billion pesos ($13.4 billion) have been allocated since the lockdowns in mid-March to cope with the pandemic.

Quimbo said the stimulus amount needs to be increased if the government wants to regain the economic losses brought by the virus. She estimates that the pandemic has cost the economy 2.4 trillion pesos ($49 billion), based on the government’s revised contraction estimate for this year.

“I agree we have to be thrifty with money because of the uncertainty ahead of us,” Quimbo said.

“But we are at an impasse and the only way out is a fiscal stimulus. Instead of saving for a rainy day, which we don’t know when it will come, the government must have a plan to control the virus so it can better adjust its spending to stimulate the economy,” she added.



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The Philippines is in need of 1.56 trillion pesos (approximately $32 billion) to kickstart a recovery from a record economic contraction caused by the coronavirus pandemic, according to Stella Quimbo, co-chair of the panel on economic stimulus in the House of Representatives. The focus of the financial support should be on wage subsidies and low-interest loans for small businesses, an important economic sector which employs more than 60 per cent of Filipino workers, she said. “Most of all, It is the drop in consumption that is causing the contraction,” Quimbo said, adding that “if we don’t address the loss of...


The Philippines is in need of 1.56 trillion pesos (approximately $32 billion) to kickstart a recovery from a record economic contraction caused by the coronavirus pandemic, according to Stella Quimbo, co-chair of the panel on economic stimulus in the House of Representatives.

The focus of the financial support should be on wage subsidies and low-interest loans for small businesses, an important economic sector which employs more than 60 per cent of Filipino workers, she said.

“Most of all, It is the drop in consumption that is causing the contraction,” Quimbo said, adding that “if we don’t address the loss of jobs and people don’t have money, how do we recover? The government has to spend so that confidence comes back.”

The Philippines plunged into a recession last quarter after several lockdowns were imposed across the country in order to contain the pandemic, which was followed by record job losses that slashed gross domestic product. As a result, the government revised its economic forecast for this year to a 5.5 per cent contraction, compared with a previous estimate of a 3.4 per cent decline and said that it was unable to fund the 1.3 trillion-peso ($26.6 billion) stimulus package approved by the Congress in June.

Just 655 billion pesos allocated since March to mitigate the economic contraction

According to teh Philippines’ economic planning secretary Karl Kendrick Chua, just 655 billion pesos ($13.4 billion) have been allocated since the lockdowns in mid-March to cope with the pandemic.

Quimbo said the stimulus amount needs to be increased if the government wants to regain the economic losses brought by the virus. She estimates that the pandemic has cost the economy 2.4 trillion pesos ($49 billion), based on the government’s revised contraction estimate for this year.

“I agree we have to be thrifty with money because of the uncertainty ahead of us,” Quimbo said.

“But we are at an impasse and the only way out is a fiscal stimulus. Instead of saving for a rainy day, which we don’t know when it will come, the government must have a plan to control the virus so it can better adjust its spending to stimulate the economy,” she added.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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