Let the economy run smoothly – NEDA – Manila Newsletter

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The National Authority for Economy and Development (NEDA) said allowing businesses to operate fully is a more sustainable approach than providing government subsidies to sectors that have lost income due to prolonged lockdowns.

Socio-Economic Planning Secretary Karl Kendrick T. Chua said Thursday, October 28, that businesses and the public would gain little from stimulus spending as the economy remains subject to varying levels of quarantine controls.

“My position has always been to open the economy safely because it is the best and most sustainable way to start the economy,” Chua said at a virtual forum hosted by the Journalists Association Economics of the Philippines (EJAP).

“If you block the economy continuously at different levels, then there would be little opportunity for this stimulus to be used,” he added.

There are much bigger gains from letting the economy function normally than from providing monetary aid, the NEDA chief stressed.

In particular, Chua cited the multibillion-peso gains that the economy, or gross domestic product (GDP), could generate if Metro Manila’s quarantine alert level drops from 3 to 2.

NEDA estimated that moving the National Capital Region (NCR) to a lower COVID-19 alert level would increase the country’s GDP by 10.3 billion pesos per week and reduce the number of unemployed people in the city. ‘about 43,000 per week.

“If you add the areas outside the NCR, it will add an additional 13.3 P per week from alert level 3 to 2 and improve our unemployment, which means reducing the number of unemployed by 56,000,” he said. said Chua.

“What this means is not just GDP,” Chua said. “It’s the jobs, it’s the people who get income and meet their needs. There are very clear indicators as to why the opening of the economy will have a direct impact on the GDP and the population.

Below Alert Level 2, commercial establishments will be allowed to operate indoors at 50% capacity with an additional 10% capacity if they have a security seal. For the exterior, they will be authorized at 70 percent.

Metro Manila is below Alert Level 3 from October 16 to 31.

Chua believes the time has come to continue reopening the economy, as the country experiences a continued decline in new daily COVID-19 infections and an increase in immunization.

“We have already survived a peak and we know how to handle it. So I would always let the economy run normally and the additional resources that could be collected from greater economic activity be used for more targeted support to certain sectors, ”said Chua,

Instead of another stimulus package, Chua said “a more efficient and lasting solution would be to open up and let the economy run.”

Instead of another stimulus package, Chua said “a more efficient and lasting solution would be to open up and let the economy run.”


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