Increased government infrastructure spending is needed more now after the implementation of stricter quarantine measures in the National Capital Region and four nearby provinces to curb the spread of the novel coronavirus disease pandemic.
Rizal Commercial Banking Corporation chief economist Michael Ricafort said “tighter restrictions could slow down economic recovery.”
He noted, “The resulting reduction in the capacity and scale of some affected business and industries, somewhat reverting back to levels a few weeks ago, would slow down the pace of economic recovery.”
Ricafort added the recent upticks in Covid-19 infections “would also result in less people going out as a matter of prudence and would result in reduced consumer spending and slower pick-up in economic [and] business activities. Thus, government spending especially on infrastructure would be needed more to pump-prime the economy.”