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Philippine economy to take 10 years to recover from COVID-19: NEDA chief

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Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="edsa AFP " src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/life/10/01/20170518-metro-manila-edsa-afp-1.jpg"/><figcaption>This picture taken on September 30, 2016 shows a general view of traffic as Manila&#x27;s financial district is seen in the background. <em>AFP Photo/Noel Celis/file</em></figcaption></figure></div><p>MANILA - The Philippine economy will take more than a decade to return to pre-pandemic growth, an official said Thursday, warning the next two generations of Filipinos would be paying for the cost of COVID-19.</p><p>Lockdowns and other restrictions aimed at slowing the spread of the coronavirus have shattered the nation&#x27;s economy, throwing millions out of work and leaving many poor families hungry.</p><p>&quot;Our long run total cost of COVID and the quarantine both to the present and future society -- meaning our children and our grandchildren -- will reach P41.4 trillion&quot; ($810 billion), Economic Planning Secretary Karl Chua said.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/spotlight/10/01/21/september-is-worst-month-for-ph-in-covid-19-fight">September overtakes August as worst month so far in PH COVID-19 fight</a></li></ul><p>The figure is more than twice the Philippines&#x27; gross domestic product in 2020, which the World Bank estimates at $361.5 billion.</p><p>The losses would be felt over the next 10 to 40 years, Chua said.</p><p>Consumption, investment and tax revenues would struggle to recover as social distancing rules prevent key sectors, such as tourism and restaurants, from fully reopening.</p><p>Lower productivity caused by death, illness or lack of schooling during the pandemic &quot;is likely to be permanent&quot;, he added.</p><p>The economy is expected to expand by four to five percent this year, Chua said, compared with a record contraction of 9.6 percent in 2020.</p><p>But it would take 10 years before the country returned to pre-pandemic growth, which averaged 6.4 percent in the 10 years before COVID-19 hit. </p><p>Nearly 70 percent of the economy, including 23.3 million workers, remained under &quot;heightened quarantine&quot; restrictions, Chua said.</p><p>He warned lockdowns caused greater hunger and were not the answer to the pandemic.</p><p>The Philippines has recorded more than 2.5 million infections, including over 38,000 deaths.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/09/29/21/philippines-at-bottom-of-bloomberg-covid-resilience-ranking">Philippines drops to bottom of Bloomberg&#x27;s COVID Resilience Ranking</a></li></ul><p>Just over a quarter of the adult population has been fully vaccinated amid a delayed and slow vaccination rollout.</p><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1609031" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

The Philippine economy will take more than a decade to return to pre-pandemic growth, an official said.