Bangko Sentral ng Pilipinas (BSP) or Central Bank of Philippines Governor Benjamin Diokno has said the government was not likely to lock down cities or wide areas because doing so would hinder economic recovery.
“What I am seeing now is that we will not return to nationwide, not even citywide lockdowns. I don’t see that happening anymore,” Diokno said during an online meeting with the members of the House Committee on Economic Affairs.
He said the government had improved its response to the pandemic by conducting contact tracing and setting up more testing facilities.
When the pandemic broke in March, the government placed Metro Manila and other areas in Luzon under enhanced community quarantine to curb the spread of the coronavirus disease.
The restrictions were relaxed in June, allowing some businesses to reopen.
At present, Metro Manila and the provinces of Laguna, Cavite and Rizal are under a more relaxed general community quarantine (GCQ) while Batangas and Quezon are under modified GCQ until July 31.
Diokno said that instead of imposing wider community quarantines, the government could declare “granular” or barangay (village)-level lockdowns. This would give the government more opportunity to open up the economy, which contracted by 0.2% in the first quarter of the year because of the impact of the pandemic.
“In the meantime, let’s open the economy. Let’s see where we are right now,” the central bank chief said.
In his presentation, Diokno reiterated that the Philippine economy was poised to recover next year.
“By next year, we expect a strong bounce back with a growth of 8-9%,” he said.
“Now the BSP reiterates its commitment to use its entire arsenal of policy tools and instruments in a timely and prudent manner to help cushion the economy from the potential fallout,” Diokno added.
Meanwhile, the Department of Finance has said that it had secured the full backing of more than 100 manufacturing companies in its call for relaxed quarantine measures in Metro Manila and other major urban centres.
In a statement, the Finance department quoted the Federation of Philippine Industries (FPI) as saying that the easing of mobility restrictions in Metro Manila, Calabarzon (Cavite-Laguna -Batangas-Rizal-Quezon region) and other urban hubs would help sustain economic recovery.
“The Federation is supporting the call of Secretary Carlos Dominguez 3rd that the country’s main economic centres like Metro Manila, Calabarzon and other urban areas should move to looser quarantine restrictions as soon as possible to reopen the economy, with the precaution that those factories and barangay with Covid-19 cases be dealt with more strictly,” FPI said in a letter to the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID).
FPI said the pandemic had dealt the economy a strong blow that “halted its robust growth.”
The lockdowns “affected 75% of the economy, shrank gross domestic product by 0.2% in the first quarter and its extension starting April resulted in a 15-year high unemployment rate,” it said.
“FPI fully agrees with Secretary Dominguez that there are already signs of economic recovery when the quarantine restrictions were relaxed starting this June 2020 as import volumes improve, reflecting rising economic activity. Hence, there is a need now to further loosen the quarantine restrictions in all main economic centres,” the group added.
The organisation urged the IATF-EID to allow roadworthy public utility jeepneys as these are “much safer than air conditioned versions in reducing the viral load during transport, with a caveat that both the drivers and passengers wear masks, in addition to following other health safety measures.”
“This is very critical because the ordinary workers could not report for work since this (mode of) transportation is not available particularly in the economic centres,” it said.
FPI also asked the government to ease movement restrictions in the countryside to re-energise the agriculture and forestry sectors.
“This will help to revive our agriculture and forestry enterprises in the countryside, which more often than not are supplying the companies in the main economic centres,” it said.
International / ASEAN/Philippines
Central Bank chief says local lockdowns ‘can help govt open economy further’
Workers wearing masks for protection against the coronavirus disease (Covid-19) bring out delivery orders at GrabKitchen, in Makati City, Metro Manila, yesterday.
