MANILA, Philippines — The country’s economy is projected to recover as Metro Manila and other major cities are put under Alert Level 1, where less restrictions are mandated by the authorities.
According to National Economic and Development Authority (NEDA) Secretary Karl Chua, the lowest alert level now in effect in Metro Manila and 38 other regions comprised 62% of the economy, with lessened restrictions benefiting almost half of the country’s workforce, or more than 20 million people.
As the Philippines moves towards the ‘new normal’, the economic output of the country starts to improve and recover from the effects of the pandemic.
“We hope that next week, the entire country will be under Alert Level 1. We can do that if we cooperate and follow the minimum health standards,” Chua said.
The NEDA secretary added that the shift of the country towards lower restrictions would generate an increase of Php16.5 billion of economic activity in gross value-added terms, which could result in Php5.2 billion more salaries for the employees and could also lead to reducing the unemployment rate in the country for the next quarter.
Chua also reiterated that reopening face-to-face classes would boost the economy and learners’ productivity.
According to NEDA’s estimate, when face-to-face classes resume, economic activity would increase by Php12 billion per week. This is due to the return of services around schools such as food stalls, dormitories, transportation, and supplies stores, among others.
Students’ learning would also improve by 50% as face-to-face classes are seen to be more effective.
Under Alert Level 1 people would expect lighter restrictions, but the authorities emphasize that the public should not relax and extra precautions should be taken