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FINANZAS Secretary Carlos G. Domínguez III said that the Cabinet-level Development Budget Coordination Committee (DBCC) may once again review its perspective on the Philippine economy to take into account the impact of the government’s decision. from returning to a tighter lockdown in August after infections increased with the relaxation of the rules.
The country’s finance chief told reporters Tuesday that the possible revision of the GDP outlook by DBCC is now “under discussion.”
The DBCC currently projects that the economy could contract by 5.5 percent, which is within the range of its GDP assumption of a contraction of 4.5 to 6.6 percent this year.
“For the full year, we project that our economy will contract about 6 percent. We have seen a spike in unemployment when the national economy was hampered by the blockade. Our companies have endured the brunt of the economic recession, ”Domínguez said in an online business forum.
Downward revisions
This fact comes after multilateral organizations lowered their respective perspectives for the Philippines this year.
Last week, the International Monetary Fund (IMF) said it sees a much worse economic contraction for the Philippines at 8.3 percent this year, a further downgrade from its previous projection of a 3.6 percent contraction. It also sees the Philippines suffering the worst economic contraction in Southeast Asia.
Last month, the Asian Development Bank (ADB) said it expects the Philippine economy to post the second-steepest economic contraction among Southeast Asian countries alongside Thailand. The Manila-based multilateral lender said it expects the economy to contract 7.3 percent, less than its June forecast of -3.8 percent.
While the IMF and ADB forecasts for the Philippine economy are lower than the economic team’s projection of a 5.5 percent GDP contraction this year, they are still within the economic contraction range of 7 to 9 percent. designed by the governor of Bangko Sentral ng Pilipinas, Benjamin Diokno.
Vaccine for COVID-19
At the same forum, Domínguez also revealed that he is already in talks with multilateral agencies, such as the World Bank (WB) and the Asian Development Bank (ADB), about financing vaccines.
He said they hope an effective vaccine will be available and available in the country by mid-2021.
“This morning I just had a long conversation with our multilateral partner at the World Bank and we talked a lot about financing this vaccine. I asked that you please work together with other multilateral agencies such as the ADB so that we do not duplicate our efforts regarding vaccines. And we are taking advantage of their experience in the identification of the vaccine, in the financing of vaccines for the Philippines, and also, not only with the vaccine itself, but with the necessary infrastructure that is required for the delivery of the vaccines, ”he said.
Domínguez noted that cold storage is needed for vaccines to be effective, adding that effective vaccination is easier to do in large cities.
“However, in the island communities, we will have to boost our infrastructure for that. So again, my discussions with the World Bank, with the ADB, who are closely monitoring the vaccine developments, are very, very promising, “he said.
When asked how much the Finance Department is thinking of borrowing from the WB and the ADB for vaccine financing, Under Secretary of Finance Mark Dennis YC Joven told the Business mirror “There are no specific figures yet.”
In addition to the World Bank and ADB, Joven said they are also in talks with the World Health Organization (WHO).
“Basically, the government is seeking a coordinated intervention from MDBs like the World Bank, ADB and WHO to support access to vaccines,” said Joven, who heads the International Financial Group.
Last week, President Duterte said that the government already has money to buy Covid-19 vaccines, but said it still needs more funds to provide vaccines to all Filipinos.
Young, however, explained that the question of whether the government could provide free vaccines for all Filipinos would depend on the type of vaccine.
“But the international rule is that 20 percent of the population will be vaccinated. Health workers and high-risk people will be prioritized, ”he said. “Internationally, children are not eligible for vaccination as Phase 3 trials do not cover children.”
In July, Domínguez said the government is ready to fund the P20 billion needed to provide free Covid-19 vaccines to 20 million Filipinos.
The purchase, he said, will be financed by the Land Bank of the Philippines and the Development Bank of the Philippines, and the vaccines will be purchased by the government through Philippine International Trading Corp., an adjunct agency of the Department of Commerce and Industry.
