NEDA: Philippine economy can bounce back

The National Economic and Development Authority (NEDA) assured the public yesterday that measures will be in place to enable the economy to bounce back from the dual shock of the virus pandemic and the extended enhanced community quarantine.

Amid the extension of the Luzon-wide community quarantine that saw a significant stoppage of business activity and consumption, economic managers now see economic growth of between zero to minus one percent this year.

“Our economy and the government are prepared to make sure that the decline will not be severe and, if possible, the bounce back will be strong,” said NEDA Undersecretary for Policy and Planning Rosemarie Edillon in yesterday’s Laging Handa virtual briefing.

She noted that the country is now implementing first phase of the government response to the spread of the coronavirus disease 2019 or COVID-19 by strengthening the capacity of the health sector  and implementing aggressive social distancing measures the imposition of a quarantine, school closures, travel bans, and prohibition of public gatherings.

The second phase, focused on mitigation of adverse effect on the economic welfare of the public is now being implemented through the social amelioration program.

“They may not be affected by COVID-19 but they may go hungry; that’s what we are preventing,” Edillon said.

The last phase of the pandemic response will be centered on the resumption of a “new normal” of economic activity.

Edillon said that while it is still too soon to determine a period of normalization of economic activity after the lockdown, the government is already identifying various measures and policies to be implemented during the transition.

The transition plan will be guided by the responses gathered from the recently-conducted rapid survey for consumers and businesses.

“While we still do not know when we can transition, the government is prepared. We are now identifying policies and programs to ease the transition to a new normal,” said Edillon.

Redefining the new normal state of economic activity under Phase 3 of the government’s pandemic response includes recalibrating development plans and work programs to conform to present conditions.

NEDA has said it will begin its preparations for Phase 3 by conducting various scenario and foresight planning exercises involving multiple stakeholders, including experts and development partners.

As the country remains in the thick of the first and second phase of the response, Edillon urges the public to strictly follow the quarantine rules and try to stay fit to lessen the burden on the health system.