MANILA, Philippines — The Philippines is "sinking deeper and deeper" and its economy is in "bad shape" because of the COVID-19 pandemic but the government is working to address the effects of the health crisis, President Rodrigo Duterte said.
Duterte said the Philippines is losing P2 billion per day because of the pandemic, which has forced several businesses to close and displaced thousands of workers. He said the amount would have gone to workers' paychecks if the economic activities were not disrupted.
"So we are sinking deeper and deeper but we are not alone. Everyone is experiencing it. But we are trying our very best to keep us afloat," the president said during a pre-recorded public address last Monday.
"Our economy, my countrymen, is really in bad condition. Imagine, how many people do not have work? The economy of the Philippines is really - is in bad shape. But as I have said, it is not only the Philippines who suffers. We, in the world, are suffering with everybody," he added.
Duterte said the Philippine economy was doing fine until the COVID-19 crisis came and constrained state revenues. The need to observe physical distancing has also affected the transportation sector, he added. Despite the disruptions caused by the pandemic, Duterte said Filipinos should not overemphasize the economic hardships being experienced by the country. He said officials are continuously working to ensure that the Philippines would have access to COVID-19 vaccines.
"Huwag naman masyado ninyong idiin ‘yang bayan ninyo na talagang pobre na ganoon kung ganoon. Nabubuhay pa naman tayo (Do not stress too much that our nation is really poor. We are still alive). Let us just hope for the best," the president said.
The Philippine economy shrank by 9.5% last year as business activity continued to be weak because of lockdown restrictions. On a quarter-on-quarter basis, the economy grew by 5.6%, rebounding from the 16.9% and 11.4% contractions during the second and third quarter, respectively.
The National Economic and Development Authority has estimated that quarantine restrictions may have cut household spending by P 801 billion in 2020 or about P2.2 billion per day. The figure is equivalent to a total income loss of about P1.04 trillion last year or an average of P2.8 billion per day.
Economic managers are optimistic that the continuous reopening of businesses, the relaxation of quarantine restrictions, and the arrival of COVID-19 vaccines would lead to a strong recovery before the end of the year. The government expects the economy to grow by 6.5 to 7.5% this year.