Economic recovery depends on public’s behavior: Diokno
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said recovery of the domestic economy and preventing a second wave of the coronavirus disease 2019 (Covid-19) depends largely on the public’s behavior.
“If we can avoid a second wave or a third wave, the forecast will be steady. That means a U-shape recovery but in case there is a second wave, that could mean a W-shape recovery. That will be much worse than the revised forecast,” he said in an interview over ANC on Monday.
With most parts of the country now placed under general community quarantine (GCQ), except for some like Metro Manila which is under a modified enhanced community quarantine (MECQ) since May 16, and the cities of Cebu and Mandaue that are still under ECQ, Diokno believes this is a “positive development unless there is a deterioration in those hotspots”.
“I think we are ready towards our move for normalization so I am optimistic that the forecast right now of DBCC might hold, unless there is a serious second or third wave,” he said.
Diokno said the 2-percent contraction forecast “is based on the effectiveness and the early deployment of what we have in mind, both fiscal and monetary”.
“We started from a position of strength,” he said, citing the banking industry, for one, remains well-capitalized and has a high asset quality.
“That’s where we need the Congressional initiative on creation of a special purpose vehicle. After that, we are okay in the banking industry,” he added.
He said bankruptcy is inevitable for some banks, but the BSP prepared the industry well.
“I think we’ll get through with minimal problems unlike during the Asian financial crisis. We’re ready for this kind of crisis. That’s what we have prepared them for,” he added
BSP governor positive that the Philippine Economy will survive the Coronaconomy because of its solid foundation. Economic recovery depends on public’s behavior. More..
Updated: May 19, 2020, StockBytes! PH
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