The government should remain focused and should stay the course and sustain the good economic prospects that could take the country to a 4 to 5 percent growth for the year as projected, according to Trade Secretary Ramon Lopez.
But for Henry Lim Bon Liong, president of the Federation of Filipino-Chinese Chamber of Commerce Inc., the key to economic recovery is through government and consumer spending.
“Prospects for 2021 remain encouraging and (these) will allow us to recover to pre-pandemic levels by the end of 2022. This will prevent long-term scarring and productivity losses.
Given the signs we have seen so far, we are looking at very good prospects for the whole of 2021 that may continue to next year if the government remains focused and stays the course. If we do, we can expect to hit the target 4 to 5 percent growth for the full year,” Lopez said in his remarks at the Franchise Asia conference yesterday.
At the Pandesal Forum also yesterday, Lim urged Filipinos to “spend, spend, spend” for the revival of businesses and for banks and the national government to help unleash liquidity to fuel the engine of economic recovery
“It may take time to achieve our pre-pandemic growth targets, but we have to start now by spending. We need a stimulus of liquidity. If more money circulates, the faster momentum of economic recovery shall benefit all in a virtuous cycle of investments and consumption,” Lim said.
Lim also urged banks to extend support to micro, small, medium-scale enterprises (MSMEs) and also for big companies to consolidate.
At the franchise expo, Lopez cited the latest economic data which confirm that the country is “igniting recovery.”
Lopez said the quarterly growth rates of industry, services andagriculture have inched upwards beginning the third quarter of 2020 to a very strong recovery of 11.8 percent in the second quarter of 2021, with industry rebounding to 21 percent and services to 9.6 percent, keeping the country on track towards a V-shaped recovery.
Lopez also noted the increasing percentage of fully operational MSMEs from just 19.8 percent around June 2020 to a peak of 58.6 percent around June 2021.
Employment, he said , is registering significant gains recording the lowest unemployment rate since the start of the pandemic at 6.9 percent in July
“Through our Economic Recovery Cluster, we are working doubly hard to decrease the unemployment rate further and achieve pre-pandemic levels at an average of 5 to 5.5 percent,” he said
Lim supported calls to prioritize preserving existing jobs of employees by reducing costs and inefficiencies.
Meanwhile, Lim called on business to help keep basic goods affordable.
“We urge our fellow entrepreneurs to be socially responsible, resourceful, and think of long-term stability even if we have to make some sacrifices. Let’s help maintain affordable prices and sufficient inventories of basic goods, especially food and now, medical supplies,” Lim added.
