Palace expecting recession but assures quick recovery when quarantine ends

MANILA, Philippines — While it is expecting a recession, Malacañang expressed confidence that the economy will quickly recover once the COVID-related quarantine measures are lifted.

“Yan naman po ay inaasahan dahil nagsara tayo ng dalawang buwan at ngayon may mga areas pa na mananatiling sarado,” Presidential spokesperson Harry Roque said during an online press briefing.

Fitch Solutions earlier said it is expecting the Philippine economy to fall into a recession in 2020 due to the pandemic.

Metro Manila and other “high-risk” areas have been on lockdown since mid-March, with most businesses closed except for those involved in essentials like food, medicine, and health care.

“Bababa po talaga ang ating ekonomiya pero tayo po ay tataas naman at inaasahan natin na mabilis ang ating pagrecover matapos po itong mga quarantines,” Roque said.

(Our economy will fall but we will rise again and we expect to immediately recover after the quarantine measures in place lapse.)

Roque added that the reopening of the government’s infrastructure program “Build, Build, Build” would also help in restoring the economy.

Earlier, the government has allowed the resumption of construction and infrastructure projects considered essential in ECQ areas.

Metro Manila, Laguna, and Cebu City, meanwhile, were placed under modified enhanced community quarantine starting May 16 until May 31.

Under this measure, there is “gradual reopening of the economy” as select manufacturing and processing plants are allowed to open up to a maximum of 50 percent capacity.

JPV

READ: LIST: What constitutes ECQ, GCQ, and ‘modified’ ECQ areas?