NEDA bats for kids going out more to hasten recovery

CONTINUING to impose mobility restrictions on children affects the economy’s ability to recover from the pandemic, according to the National Economic and Development Authority (Neda).

In a statement, Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said preventing families, including children, from leaving their homes during the pandemic significantly affected the country’s consumption spending.    

Consumption spending is the primary driver of the Philippine economy. It accounts for about 70 percent of the country’s economic growth.

“The Philippines has a young population, as 40 percent are 20 years old and below, and it is their activities with their families that help spur growth in various sectors. However, with children not allowed to go out, the economy suffered from dampened demand,” Neda said in a statement.

However, Chua maintained that the economy is strong enough to recover if the government allows it to. He also reiterated the need for sufficient and safe public transport as well as the need to boost demand by allowing family activities with strict enforcement of minimum health standards.

“The reality today is that the virus is not going to go away easily and we will have to live with it for a longer period of time,” Chua said. Apart from boosting consumption, measures that will help the country’s recovery momentum include the immediate passage of key reform bills.

This includes the Financial Institutions Strategic Transfer (FIST) Act; the Government Financial Institutions’ Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) Act; and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

Further, Chua said the economic recovery of the Philippines will be driven by the 2021 budget including the P1.1-trillion infrastructure program.

“Our recovery program consists of a series of legislations. First is the Bayanihan II, which was extended to June 2021. It provides emergency support and special powers for the government to swiftly address this crisis,” said Chua.

Quarantines have resulted in GDP contractions of 16.9 percent and 11.5 percent in the second and third quarters of 2020, respectively.

Each day of General Community Quarantine cost the National Capital Region, Region 3, and Region 4A around P700 million in wages. Moreover, reverting to Modified Enhanced Community Quarantine could cost NCR and adjacent regions around P2.1 billion in wages a day.