NEDA sees economy normalizing, 75% of companies now operating

THE National Economic and Development Authority (NEDA) said economic activity is heading “towards normalcy” despite expected further setbacks to growth in the second quarter.

In a Palace briefing Thursday, NEDA Acting Secretary Karl Kendrick T. Chua said the second quarter performance will be worse than the 0.2% contraction during the first quarter. He said the enhanced community quarantine (ECQ) first imposed over Luzon on March 17, took in most of the second quarter.

“’Yung ECQ natin, majority ay nasa second quarter. ‘Yung April and May of course will look really bad because the ECQ shut down 75% of the economy tapos ‘yung mga pwede lang lumabas ay ‘yung mga nasa essential sectors… kaya ang ating GDP projection for the second quarter will be worse than the first quarter (Most of the ECQ happened during the second quarter. April and May of course will look really bad because the ECQ shut down 75% of the economy and only the essential sectors were allowed to work… that is why our GDP projection for the second quarter will be worse than the first quarter),” Mr. Chua said.

He said that beginning this month, most industries will gradually reopen when most areas enter a more relaxed form of lockdown known as modified general community quarantine. Metro Manila, Pangasinan, Region 2, Region 3, Region 4-A, Region 7, Zamboanga City, and Davao City are under GCQ.

“At this point, mga 75% ‘yung bukas for business…so bumabalik towards normalcy ang ating ekonomiya (around 75% of businesses are open…so our economy is returning towards normalcy,” he said.

He added there will be more clarity on growth by the third quarter once quarantines are eased further. — Gillian M. Cortez