The surge in COVID-19 cases has prompted Metro Manila mayors to re-impose curfew hours and granular lockdowns. The is concerning as the capital accounts for nearly 40 percent of the country’s GDP.
This means that any move to tighten restrictions again will significantly affect the country’s move toward economic recovery.
Capital Economics said recent economic data have been disappointing.
It noted, “Export growth fell back further into negative territory in January. Labor market data also show that the unemployment rate remained stuck at 8.7 percent at the start of 2021.”
The country’s export sales slid 5.2 percent in January to 5.5 billion dollars due to renewed restrictions in most developed markets amid the new COVID-19 variants that are more transmissible.
Employment in the country also continues to be bleak as four million Filipinos remain jobless in January, still reflecting the relatively slower pace of economic recovery.