THE country’s chief economist brushed off the potential threat of the novel coronavirus (nCoV) to the Philippine economy given the measures taken to contain its spread.
“I think it’s just
short-term effect because given that there’s a lot of measures being done to
minimize the Filipinos incurring the coronavirus,” Socioeconomic Planning
secretary Ernesto Pernia said in a press conference on Thursday.
“It shouldn’t take long for that to have an effect on the economy,” Pernia
said.
The Department of Health earlier confirmed the very first case of novel coronavirus in the Philippines.
In a press conference, Health secretary Francisco Duque III said that a 38-year-old woman from Wuhan, China arrived in the Philippines via Hongkong on Jan. 21.
Nevertheless, Finance secretary Carlos Dominguez III said Chinese government acted “very swiftly” and been “very proactive” in the control of the disease.
“They are shortening the potential length and spread of this virus,” Dominguez said.
In a joint statement, the Economic Development Cluster said the government
remains vigilant and well-positioned to address the domestic and external risks
that can push down the economic growth trajectory over the medium-term.
“Externally, the primary downside risks include the slowdown in global growth, a lackluster recovery in trade, protectionist policies and other disruptions to the trade and supply chains, the volatility in global oil prices, disruptive technologies, and the global spread of communicable diseases such as the novel coronavirus,” it said.
On the domestic front, risks could emanate from natural hazards such as threats posed by the possible eruption of the Taal Volcano, the continued presence of the African Swine Fever in the country, water supply disruptions, slow implementation of the infrastructure projects, and policy uncertainties such as the delay in the passage of our tax reform packages, according to the economic team.
Pernia, for his part, said the coronavirus scare could also potentially be positive for the peso as Filipinos’ travel to China and adjacent Asian countries will be curtailed.
“Filipinos will be careful so they won’t be spending foreign exchange,” he said. (GMA News)
