The World Bank warned on Friday that slow vaccinations in the Philippines due to people’s hesitancy on the vaccines and the government’s struggle to conduct large-scale inoculations could delay economic recovery and take away 1-percentage point from the potential gross domestic product growth this year.
Aaditya Mattoo, the bank’s chief economist in the Asia-Pacific Region, said in an online briefing that the Philippines might grow this year by 5.5 percent from the record contraction of 9.5 percent in 2020, the worst since the end of World War 2.
This latest projection was lower than the 5.9-percent GDP estimate it made in December 2020.
For 2022, Mattoo expects the Philippine economy to expand by more than 6 percent.
“The big problem in the Philippines is the hesitancy or people’s skepticism about the COVID vaccines. Also, [another problem] is the [government’s] capacity to implement a large-scale vaccination,” Mattoo said.
Mattoo said that compared to China and Vietnam that recovered faster to the levels seen before the pandemic struck, the Philippines might return to the pre-pandemic levels latter part of 2022 due to “deep scarring caused by the pandemic.”
Mattoo said the slow pace of vaccination could also result in the emergence of new variants of the virus.
“Indonesia and the Philippines relied on prolonged lockdowns that resulted in heavy economic cost,” Mattoo said. Mattoo said the government should not rely on vaccinations alone. He said it must be accompanied by testings and isolations.
Mattoo also said the government should make sure that the vaccines must go to the sectors of the society where they are needed most or the priority sectors.
Latest reports said some individuals not included in the so-called priority sectors have already availed of the vaccinations in the country. These include some local government officials and an actor. Authorities currently are investigating this report.
The bank’s report titled “Uneven Recovery” released on Friday said that the developing economies of East Asia and the Pacific are facing a markedly uneven recovery.
It said only China and Vietnam are experiencing a V-shaped rebound where output has already surpassed pre-pandemic levels because the two countries have succeeded in suppressing the spread of the virus.
In the other major economies, output remained on average around 5 percent below pre-pandemic levels. Hardest hit of all have been the Pacific Island countries. Economic performance has depended on the effectiveness of virus containment, the ability to take advantage of the revival of international trade, and the capacity of governments to provide fiscal and monetary support.
“The economic shock caused by the COVID-19 pandemic has stalled poverty reduction and increased inequality,” Victoria Kwakwa, vice president for East Asia and the Pacific at the World Bank, said. “As countries begin to rebound in 2021, they will need to take urgent action to protect vulnerable populations and ensure a recovery which is inclusive, green and resilient.”
*Meanwhile, 94 percent of Filipinos are worried that they or members of their households would contract COVID-19 but 61 percent are unwilling to be vaccinated against the coronavirus, a Pulse Asia survey has shown. The survey, conducted from February 22 to March 3, showed that the level of worry is almost identical in social classes with 94 percent for ABC, 93 percent for D and 95 percent for E. The rest of Filipino adults are either undecided (3 percent) or are not worried about contracting COVID-19 (3 percent). But while almost 100 percent of Filipinos are worried that they or a household member will be infected by COVID-19, 61 percent of Filipinos do not want to get a vaccine mainly due to safety concerns (84 percent).
*Leaders of the House of Representatives on Friday renewed calls for the passage of House Bill 8628 or the proposed “Bayanihan to Arise As One Act,” a third installment of the government’s response to COVID-19 and its devastating impact on the economy. The call comes amid former Speaker and Taguig Rep. Alan Peter Cayetano’s push for his own “Ayuda Bill,” which seeks a one-time P10,000 financial aid per Filipino family. The P420-billion Bayanihan 3 bill was authored by Marikina City Rep. Stella Luz Quimbo and Speaker Lord Allan Velasco.
*Some P300 million in financial assistance for workers affected by the COVID-19 pandemic remains unclaimed, the Department of Labor and Employment said. The unclaimed funds stand to benefit some 45,000 workers, DOLE spokesperson Rolly Francia said. Beneficiaries are urged to coordinate with the agency’s field offices or their nearest remittance centers.