Finance Secretary Carlos Dominguez III says the Philippines has resources for a “protracted fight” against the pandemic and its economical effects, which contracted by a record in the second quarter.
In a statement, Dominguez said that the nation’s “unique fiscal and macroeconomic strengths” going into this year provide it with a “solid footing” to meet the pandemic’s economic challenge. He added that while the country has “the resources necessary to endure this challenge,” it must also be conserved “for the succeeding rounds of this fight.”
Despite the latest lockdown, economic recovery in the third quarter will proceed at a “steady, yet moderate” pace after the gradual reopening of businesses since May, the Finance Secretary said. The restriction is long-term positive as it gives time for the government to boost health-care resources and contain the spread of the virus, he said.
“Benign” inflation, a strong peso and a high-investment grade credit rating, which allowed the government to borrow money at relatively lower cost, will help it “mount a strong recovery soon enough,” Dominguez added.