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The current year is about to end and we must all look to 2021 as a year of hope, healing and speedy recovery.
We should welcome the New Year with many aspirations. There is no point complaining about the events that occurred in 2020. We cannot undo the many bad things that happened in the Philippines and the rest of the world. All nations suffered the same pandemic fate that resulted in the loss of millions of lives, jobs and livelihoods.
We can only reflect on the year it was, and perhaps learn from the lessons that Covid-19 taught us. People will live in a new normal and discard some of the ways of doing things as the virus has taught us.
The New Year will be just as challenging as we are not out of the woods yet despite the upcoming shots. However, we must persevere, knowing that the virus can be defeated.
President Duterte, in his Christmas message to the nation, acknowledged that 2020 was a difficult time for all Filipinos. Many lives, he said, were lost and changed forever due to the Covid-19 pandemic and various natural calamities. But through it all, Duterte said the Philippines will continue to survive and grow thanks to our unity, strength and the indomitable spirit of the Filipinos.
I share President Duterte’s optimism despite the nation’s woes. The economy and the Filipinos in general were the hardest hit by the pandemic. Our gross domestic product is contracting for the first time in 30 years. The economy contracted nearly 10 percent in the first three quarters of 2020, with household consumption falling 9.3 percent and investment 41.1 percent in the third quarter.
The Philippine economy paid the price for trying to contain the virus. Months of lockdowns, especially in the latter part of the first quarter and throughout the second quarter, led to thousands of business closures and millions of job losses.
Consumer spending plunged 9.3 percent in the third quarter, and many Filipinos, wary of contracting the virus that has infected more than 400,000 in the Philippines, avoided shopping malls and restaurants. Sales and consumption in Metro Manila, which accounts for a third of the country’s production, fell amid limited public transportation.
Filipinos, in general, observed the health protocols adopted by the authorities. Workers and consumers assimilated the discipline necessary to avoid the virus. I would like to believe that the Philippines has long flattened the Covid-19 infection curve. The Philippines just ranked 28th among the countries with the most virus infections in the world, with 467,601 as of December 25. By contrast, our neighbor Indonesia was ranked 20th with a total of 700,097 cases.
That said, the Philippines should do more to reopen the economy further. As I have written before in this column, restoring jobs for millions of Filipinos, along with widespread vaccine distribution, should be the country’s priority in the coming year, given the discipline and health protocols that our population is seriously observing.
The latest “improvement” job report reminded us of what an economic reopening can do in terms of employment. The unemployment rate in the country improved to 8.7 percent in October from 10 percent in July and 17.6 percent in April, after the Philippines allowed more economic activities to resume.
The National Authority for Economy and Development has admitted that the unemployment rate could have been reduced if the economy had been more open and enough public transportation had been allowed.
The Philippine economy has maintained its potential to expand strongly. The contraction of the economy and the loss of jobs along the way, as I said before, are not long-term problems. The Philippines has maintained its strong macroeconomic fundamentals: a manageable inflation rate, a stable currency, high foreign exchange reserves, a skilled workforce and a young population. The political climate is also very stable, with President Duterte maintaining his high approval rating despite the troubles of the pandemic.
The year 2021 is the time to start the economic rebound. But first things first: job creation should be the country’s priority next year, and authorities can accomplish the task to a great extent if transportation restrictions are eased to improve mobility. Our workers are very disciplined. They know the health protocols and seriously implement them. 2021 should be their year and we owe it to them.
HAPPY NEW YEAR!
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