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PCCI urges gov’t to adopt, implement stimulus package as PHL falls into recession


The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business organization, is calling on the Duterte administration to act swift and implement a stimulus package to drive the economy into recovery after it plunged to its worst in almost four decades.

“That we will go into a recession is no longer surprising. I had advised our members not to expect the second, and maybe even the third quarter numbers to be better unless the government acts fast to adopt and implement stimulus packages and allow the full resumption of economic activities,” PCCI president Benedicto Yujuico said in a statement.

The Philippine economy as measured by gross domestic product (GDP) - the value of goods and services produced by a nation in a given period - shrank 16.5% in the second quarter —the worst performance on record since 1981.

The negative GDP in the April to June period has brought the country to a “technical recession,” the first time since 1991.

Yujuico said the contraction of the economy in the second quarter sent a strong signal to the government to accelerate the passage of stimulus measures and the full reopening of business activities.

“Businesses will need substantial fiscal and non-fiscal support to survive and fully recover,” he said.

“We are struggling with our projections. We cannot do even medium-term planning because of COVID-19’s unpredictability. This situation could persist until such time that a vaccine becomes readily available. And we are looking at 2021 for this,” he added.

Smaller enterprises, the PCCI chief said, are already having cash flow and liquidity issues having to pay taxes, compounded rents, loans and interest charges, utilities and manpower, with negative returns.

Taking out loans may not even be an option anymore for these enterprises. 

“They are wary because it could lead to bigger loans,” Yujuico said.

He said the PCCI continues to bat for the the P1.3-trillion ARISE bill or the Accelerated Recovery and Investments Stimulus for the Economy even as the national government is set on the P140 Billion Bayanihan to Recover as One Act.

Yujuico noted that neighboring countries in the region whose economies have performed better than the Philippines’ have allocated bigger budgets. 

“Indonesia, whose second quarter GDP decelerated by 5.32% has a stimulus package amounting to $47.6 billion, Thailand at $59.7 billion and Vietnam, whose GDP fell at 0.36% and which most investors relocating from China are eyeing, has approved $ 7.6 billion,” he said.

Pointing out that extending the lockdown could worsen the woes of businesses from which they may never be able to recover even with fiscal support, Yujuico urged for the full resumption of economic activities. —LDF, GMA News

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