Senators: More needs to be done before economy can return to pre-pandemic level

Three senators on Tuesday pointed out that the economy still has a ways to go before it returns to its pre-pandemic level, amid the 11.8% growth recorded in the second quarter of 2021.

In a text message to reporters, Senate President Pro Tempore Ralph Recto said that it could take the Philippines a year or two before it can reach the gross domestic product (GDP) that the country had recorded before the COVID-19 pandemic.

“We grew 4% first half. I expect full year to be 4%. Will take a year or two to achieve GDP 2019 level,” Recto, a former NEDA secretary, said.

Meanwhile, Senator Grace Poe said the latest data showing the country’s economic growth is “nothing to brag about.”

“Economic growth may be at its highest since 1988 but let’s not lose sight of the fact that still, it isn’t back to pre-pandemic levels,” she said.

“We may have grown by 11.8 percent from the 17-percent contraction of last year but that’s nothing to brag about because much of it is base effect,” Poe added. 

The base effect: the economy plunged -16.9% in the same period last year, so calculating against that number for a year-on-year comparison will be reflected by a larger number.

The senator said the government must spend the tax money on health sector by paying the hospitals and the healthcare workers while protecting and creating jobs.

“Let’s keep our people safe and ensure that there will be food on their table. Then and only then can these growth numbers mean anything,” she said.

Senator Joel Villanueva shared Poe’s sentiments, saying the latest data is a “good sign” but it’s “too early to tell” if this can be sustained as the government has reimposed the strictest lockdown in the National Capital Region and its nearby provinces.

“Our recovery is hinged on our ability to control the spread of the virus. Aside from the continuous roll-out of vaccines, we need to step up our contact tracing efforts so that we identify clusters and hotspots, and implement localized lockdowns as needed.  Implementing a wide-scale lockdown such as ECQ should be the last resort,” he said.

The Philippines on Tuesday recorded an 11.8% GDP growth for the second quarter of 2021.

Socioeconomic Planning Secretary Karl Kendrick Chua said this was driven by more than just the base effect, claiming that it is the result of a better balance between addressing COVID-19 and the need to restore jobs and incomes of the people. — BM, GMA News