The Philippines is in a better position to overcome the new coronavirus 2019 (COVID-19) crisis than it was in the previous global crises thanks to its years of strong growth, low public and private debt levels and improvements in key health indicators when the pandemic struck.
The Oxford Business Group (OBG), in its COVID-19 Response Report on the Philippines said the country’s economy is expected to rebound “ as the fastest growing in Asean next year as pent-up demand is unleashed.”
The report said the severe contraction suffered by the economy was due to the limitations on business following the lockdowns early in the pandemic.
The report also noted that despite the high number of COVID cases compared to most regional peers, the country has a case-fatality rate that below the global average.
While taking care of the containment of the virus through scaled up testing capacity, the Philippines also deployed a wide range of fiscal and monetary policy tools to ensure it has sufficient liquidity to support the economy.
With rules on mergers and acquisition (M&A) rules eased, OBG said the Philippines offers a range of M&A opportunities for local and international investors seeking attractively priced assets.
OBG noted that companies that have managed to adapt and thrive during the pandemic should emerge in a stronger position
Wide-ranging tax reforms could also help reshape the business environment, it added.