With the Covid19 pandemic continuing to necessitate heavy restrictions on consumption, production, revenues, and livelihoods, the National Economic and Development Authority (NEDA) has announced that all of the country’s economic losses are piling up into a projected total of P41.4 trillion by 2060.
NEDA chief and Socioeconomic Planning Secretary Karl Kendrick Chua recently presented to the public-private Test, Trade, Treat (T3) Task Force, explaining that with lockdown after lockdown ensuing as Covid19 cases have continued to spread throughout the nation, last year’s economic losses alone had already reached P4.3 trillion due to output losses.
Chua added further that in the next four decades, the long-run cost total incurred by Covid19 was projected to hit P37 trillion, due to the severely impaired “consumptions and investment” from close contact sectors such as public transportation, tourism, and amusement.
P1.2 trillion also stands to be lost in the next decade as taxes, corporate, personal, and value-added, would continue to remain under-utilized as demand remains hindered by the pandemic.
The global health crisis’ impact on the country’s pre-pandemic road to economic prosperity was another notable concern that Chua mentioned, as workforce productivity will likely remain lackluster due to illness and death.
In total, the P41.4 trillion in losses will be comprised of P4.5 trillion from reduced consumption, P21.3 trillion from private business, and P15.5 trillion from human capital, education, and health sector, losses over the upcoming 10 to 40 years.
These ravaging damages in mind, Chua implored the national government to push for a “strong recovery” in the next two years, aiming for growth rates of 4% to 5% and 7% to 9%, respectively, through aggressive vaccination efforts in order to achieve a totally vaccinated adult population in the country.
Similar to what most experts in the business sector have been pushing for, Chua also stressed the need for more effective risk management plans that don’t rely on rigid, nationwide lockdowns, in order for the economy to safely resume at the same time.