Neda’s estimated economic impact of COVID-19 showed a decline in inbound tourist arrivals by 1.42 million if the outbreak lingered on until June, which would lead to 30,000 to 60,000 in job losses in the tourism sector alone.
Monthly inflation would also increase by 0.1-0.2 ppt due to COVID-19, while the budget deficit could breach the 2020 program of 3.2 percent of GDP to a wider 3.3-3.4 percent, Neda estimates showed. “The problem is if it [COVID-19] will linger, if China will not recover in the next two months,” Edillon warned.
Also, Edillon urged providing relief to banks and quasi-banks through staggered booking of allowance for credit losses, non-imposition of penalties on legal reserve deficiencies, and non-recognition of certain defaulted accounts as past due.Edillon also encouraged waiving participation fees for international trade and travel fairs, which the Department of Tourism had estimated to cost P11.2 million.