The decrease in COVID-19 cases in the Philippines bodes well for economic recovery and the restoration of jobs lost during last year’s pandemic-induced steep recession.
“The outlook for the Philippines has improved. The country has seen a decline in daily new infections after breaking records in the region earlier this year. New cases fell from a peak of more than 11,000 daily to half that level now,” Moody’s Analytics senior Asia-Pacific economist Katrina Ell and associate economist Dave Chia said in a report.
The Philippines’ retail activities are expected to gradually pick up in line with eased restrictions from mid-July,” Moody’s Analytics said.
But Moody’s Analytics said the Philippines “needs to step up its vaccination efforts, as the sluggish campaign leaves it vulnerable to fresh resurgences” like those currently happening in Indonesia and Malaysia.
Pantheon Macroeconomics senior Asia economist Miguel Chanco said in a separate report that the decline in the unemployment rate to 7.7 percent in May from 8.7 percent in April during the reimposed lockdowns in National Capital Region (NCR) Plus “indicated that the job market generally has improved since the start of the year.”
Japan Center for Economic Research (JCER) said the Philippines and Thailand have recently “fared better” than Malaysia in terms of combating new infections.