Omicron could slow down PH economic growth
The recent surge in active COVID-19 cases due to the Omicron variant could impact economic growth in the first quarter of 2022, according to UnionBank of the Philippines Chief Economist Ruben Carlo Asuncion.
In a report from BusinessWorld, Asuncion said that “although it may not resemble the previous lockdowns, it can be quite a drag” to the country’s economic recovery.
Metro Manila was placed under Alert Level 3 from January 3 to 15 with restrictions on the movement of unvaccinated individuals, to control the surge of infections.
Asian Institute of Management Economist John Paolo Rivera said that the new strain could cause “inflationary pressures and supply constraints” to the global value chain.
For instance, the deployment of OFWs and reopening of the tourism sector could be halted due to the rising COVID numbers.
Rivera added that if this continues, “first-quarter economic activities might be compromised, derailing again [the] economic recovery.”
As of January 2, less than 50 million Filipinos have been fully vaccinated against the virus, missing the government’s goal of inoculating 54 million individuals by the end of 2021.
