Senators warn COVID-19 economic effects to last 2-3 years

Philippine senators are warning that the economic effects of the COVID-19 pandemic will persist for two to three years, potentially leading to a deep recession or even depression.

Senate President Pro Tempore Ralph Recto estimates a full economic recovery will take two to three years, contingent on the development of a cure or vaccine.

Recto advises the government to prepare for a prolonged struggle with the virus and recommends smart economic reopening, investment in growth areas, and support for hospitals, small businesses, and displaced workers.

Senator Cynthia Villar advocates for reopening labor-intensive sectors like agriculture, manufacturing, and construction to mitigate the impact on daily-wage earners and ensure food supply.

Villar highlighted that extended enhanced community quarantine (ECQ) measures disproportionately affect the poor and lower-middle class, leading to job losses and insufficient relief.

She stressed the need for more realistic and sustainable measures to prevent social unrest stemming from hunger and unemployment.

The finance secretary previously projected a zero to negative one percent economic growth for the Philippines this year due to the pandemic's severe impact on businesses and slowed tax collections.