BUSINESS leaders have called on the government to craft a recovery plan that focuses on public health, as regaining the public’s trust to go out again is key to the economy’s bouncing back.
George T. Barcelon, private sector representative at the Legislative Executive Development Advisory Council, told the BusinessMirror no economic recovery is in sight if workers are scared of going out on fears of getting the virus.
As such, he argued it is important that the government cooperate with the health sector in crafting a recovery plan that would bring the public some sense of safety and security.
“The [GDP] contraction is [understandable] because our country, being a consumption economy, has been disrupted due to the prolonged lockdown. But underlying reason is the fear of being infected by Covid-19,” Barcelon said in an interview with the BusinessMirror.
“The focus now must be on health issues. It’s imperative for government and private sector to closely collaborate to give the general public assurance of medical support and peace of mind to resume working and stimulate consumption,” he added.
The Philippine Statistics Authority (PSA) on Thursday reported the economy contracted 16.5 percent in the second quarter due to the prolonged quarantine period that kept people home and most businesses closed.
“The safety of public transportation is crucial to the mobility of the working class. It has been a factor in the slow recovery of the economy,” Barcelon said.
“Private sector has done its part in extending assistance in the previous three-month lockdown in foods and funds. They too are financially drained, especially the micro, small and medium size establishments,” he added.
The business leader was referring to the negative performances posted by industry and services, two sectors that rely heavily on manual labor. Millions of workers across the country have either been laid off or put on floating status due to the cycle of quarantine restrictions put in place by the government.
The PSA reported industry contracted 22.9 percent, from a growth of 2.5 percent last year, while services posted a negative 15.8 percent performance, from a positive 7.5 percent during the same period in 2019.
In an interview with the BusinessMirror on Wednesday, Philippine Exporters Confederation Inc. President Sergio R. Ortiz-Luis Jr. said the government has to expedite the creation of an economic recovery plan, as many businesses are now just hanging by the thread before shutting down for good.
He said workers should be allowed to return to their jobs once the modified enhanced community quarantine in Mega Manila is lifted on August 18. Any extension of the lockdown would prove to be fatal for the operations of thousands of businesses, he warned.
Image credits: Nonie Reyes and Nonoy Lacza
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