MANILA, Philippines — The Philippine economy stands to lose P2.4 trillion in revenue this year as a result of months of community quarantine measures implemented during the coronavirus disease pandemic, an economist-lawmaker said yesterday.
House assistant minority leader and Marikina Rep. Stella Quimbo agreed with the estimate of economic managers of the Duterte administration that the economy would contract by 5.5 percent for the entire year.
With the economy contracting in the second quarter by a record 16.5 percent, she said the country is now officially in recession.
The lawmaker revealed that tourism, transport and manufacturing-exporting sectors are among the hardest hit industries.
Quimbo warned that the economic impact of the pandemic could be worse if the government fails to implement necessary measures.
“Unless we put a handle on our COVID situation, we will have to keep adjusting the amount needed for economic stimulus. We need a clear plan to combat the virus. Countries that have been able to control the spread of the virus are also those that have been able to begin the journey toward economic recovery,” she said.
“We need a proportionate response if we are to bounce back by 2021. If there is no sufficient government support, more people will lose jobs and more businesses will close down,” Quimbo said.
The lawmaker, an economist by profession, further explained that economic losses could be averted if the government comes up with a stimulus program worth at least P1.5 trillion.
Quimbo then appealed to economic managers to fund the proposed Accelerated Recovery and Investments Stimulus for the Economy Act (ARISE) passed by the House.
“Under ARISE, we have a comprehensive plan to address the economic crisis. ARISE proposes P1.3 trillion over three years. Special attention is given to our small businesses who are most in need of resources in order to stay afloat, with P60 billion allocated for MSME loans and assistance under DTI (Department of Trade and Industry) and SBC (Small Business Corp.),” she said.
Quimbo said the proposed P162-billion Bayanihan to Recover As One Act or Bayanihan 2 would not suffice to provide needed support for economic recovery.
She likened Bayanihan 1 to “first aid” for the economy and Bayanihan 2 to the “emergency room,” adding that ARISE would be the needed “surgery.”