Companies asked to ‘step up’ to avert economic shocks

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BPI lead economist Emilio Neri Jr. said during the Ayala-UP School of Economics Forum the economy’s dependence on services made it more vulnerable to the pandemic and that the Philippines needs bigger low-contact industries to address this. Read:

An economist encouraged the manufacturing sector to “step up” to prevent economic shocks caused byBank of the Philippine Islands lead economist Emilio Neri Jr. said during the Ayala-UP School ofADVERTISEMENT“It’s easier, I believe, to carry out protocols or lockdowns in economies with bigger manufacturing sectorsmanufacturing to the gross domestic product.unlikely to return to pre-pandemic trajectory.

“There might not be any need to force certain industries to remain the key contributors to output,” Neri[do], it can evolve into something that can allow us to recover faster.”communications technology and power industries already exceeded their pre-pandemic levels.contribution to the overall figure.

“Maybe we should just allow them to discover the opportunities and not have to force people to go outour potential trajectory for growth but even exceed it at some point,” said Neri. Neri echoed the World Bank’s call for increased access to utilities such as electricity and internet. The“If something like monkeypox gets worse and leads us to lockdown seriously again, [then] it [would] havegoing to be a problem for the medium to long term.”consumption taxes which include value-added and excise taxes imposed on goods and services.

should probably enhance wealth and income taxation a little bit more for equitable purposes,” Neri said.

 

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Which industry will be unaffected by a 100% lock down or closure? Although food essentials and medicine were allowed to stay open.

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