DTI’s Lopez: ‘Worst is Over’ for PH Economy, Risks Remain

Department of Trade and Industry (DTI) Secretary Ramon Lopez said that the economic recovery for the Philippines has begun as businesses and other economic activities for the country have been rebooted due to the relaxation of quarantine protocols amid the coronavirus disease 2019 (Covid-19) pandemic.

The trade chief however, still warned that risks remain, though the “worst is over” for the Philippine economy, In an interview with CNBC Asia on Friday.

“We are still facing risk but I would also say that the worst is over. 2020 was really the height of the lockdown and we saw the economy really dropping. But ever since, we have seen signs of recovery from GDP (gross domestic product) to unemployment rates,” Lopez said.

Recovery

The country was at its worst in the second quarter of year 2020, with various economic statistics such as employment and export rates plummeting to record figures.

The Philippines’ Gross Domestic Product (GDP) also saw a sharp drop during the second quarter of the year when most of the country was placed under the Enhanced Community Quarantine (ECQ), the most strict quarantine measure that the country has.

Data from the Philippine Statistics Authority shows that the Philippines recorded a staggering 17.7-percent unemployment rate in April last year, the highest number in which people had no jobs since 2005.

However, the government remedied this with relaxation of quarantine protocols and measures that eased up the unemployment rate to 10 percent in July.

Similar to the case of the whole world, export revenues of the Philippines plummeted by 49.9-percent in April, only having recovered by 2.2 percent in September, and 3 percent in November, respectively.

The GDP also shown improvement due to the rebooting of economic activities, from a sharp 16.9-percent decline in the second quarter of 2020 to a still well below expectations, but a better -11.9 percent in the following quarter. This shows a 5-percent increase of the country’s economic performance in succeeding quarters.

Much of this is attributed to the gradual reopening of economic activities, according to the trade chief.

“We have been reopening the economy gradually and safely towards the latter part of 2020. That is the reason why we have been seeing signs of recovery (in) many aspects,” Lopez said. (GFB)