The Philippine economy is expected to contract by six percent this year owing to the 15-day reimplementation of stricter quarantine measures in Metro Manila and four nearby provinces last August.
Finance Secretary Carlos Dominguez III said the figure is deeper than the government’s -5.5 percent gross domestic product (GDP) assumption as of last July.
Dominguez said movement restrictions implemented to address the spike in coronavirus disease 2019 (Covid-19) infections “have been very costly to the economy.”
“For the entire year, we project our economy to contract by about 6 percent. We have seen unemployment spike when the domestic economy was hindered by the lockdown. Our enterprises have borne the brunt of the economic downturn,” he said.
The -6 percent projected GDP figure for 2020 is “under discussion” among the members of the inter-agency Development Budget Coordination Committee (DBCC), he said.
The government reimplemented the modified enhanced community quarantine (MECQ) for the National Capital Region (NCR) as well as Bulacan, Laguna, Rizal and Cavite from August 4 to 18 in response to medical practitioners’ call for help to address the rising Covid-19 cases.