Duterte warns of negative economic growth if ECQ extended

Finance Secretary Carlos G. Dominguez III warned that extending the enhanced community quarantine in Luzon could lead to zero or even negative 0.8 percent economic growth for the Philippines in 2020.

Dominguez noted that businesses, particularly in the tourism and retail sectors, are significantly impacted by the prolonged lockdown.

The government anticipates lower tax collections than initially targeted due to the economic slowdown.

The Department of Finance estimates potential revenue losses of P286.4 billion for zero growth and P318.9 billion for a 1 percent contraction.

To facilitate an immediate economic rebound after the pandemic, the economic team is developing a "bounce-back" plan while assessing the full extent of the damage caused by COVID-19.

The government has surveyed around 40,000 respondents to gauge the economic impact.

Following the damage assessment, economic officials will identify specific recovery needs for various sectors, including tourism, manufacturing, SMEs, large corporations, consumers, and banks.