The Philippines has resources for a 鈥減rotracted鈥 fight against the pandemic and its effects on the economy, which contracted by a record in the second quarter, according to Finance Secretary Carlos G. Dominguez III.
The nation鈥檚 鈥渦nique fiscal and macroeconomic strengths鈥 going into this year provide it with a 鈥渟olid footing鈥 to meet the pandemic鈥檚 economic challenge, Mr. Dominguez said in a statement.
鈥淲e have the resources necessary to endure this challenge, but we must also conserve our resources for succeeding rounds of this fight,鈥 Mr. Dominguez said. 鈥淕overnment鈥檚 ability to sustain the fight depends on our fiscal stamina.鈥
The Philippines after shrinking 16.5% in the second quarter as consumer spending and jobs got hammered amid the lockdowns in Manila and other urban centers to contain the virus. Rising infections pushed government on Tuesday to reinstate in the capital region and four neighboring provinces for two weeks.
The Philippines鈥 near-term growth outlook has continued to deteriorate amid the pandemic and lockdowns, Fitch Ratings associate director Sagarika Chandra said in a statement. 鈥淒ownside risks are materializing鈥 given the country鈥檚 difficulty of containing the virus.
Despite the latest lockdown, economic recovery in the third quarter will proceed at a 鈥渟teady, yet moderate鈥 pace after the gradual reopening of businesses since May, Mr. Dominguez said. The restriction is long-term positive as it gives time for government to boost health-care resources and contain the spread of the virus, he said.
鈥淏enign鈥 inflation, a strong peso and a high-investment grade credit rating, which allowed government to borrow money at relatively lower cost, will help it 鈥渕ount a strong recovery soon enough,鈥 Mr. Dominguez said. 鈥 Bloomberg
