Economists on Thursday pushed for job creation, higher infrastructure spending and increased exports to help the economy rebound faster from the impact of the COVID-19 pandemic.
This observation was contained in the May edition of the Market Call capital markets research jointly issued by the First Metro Investment Corp. and University of Asia & the Pacific.
Data showed that in the first quarter, the economy posted a lesser contraction of 4.2 percent, an improvement from the 8.3-percent decline in the fourth quarter, but deeper than the 0.7-percent decline in the same period last year.
"Despite the disappointing -4.2 percent year-on-year further slide of GDP in the first quarter, we find some significantly positive economic data that may help the economy recover faster," the economists said.
"The outsized job creation of 2.1 million in March following through the gain of 1.9 million in February surely must have some positive reverberations. However, the continued extension of MGCQ in Metro Manila+ does provide some headwinds," they said.
Economists said an increase in jobs created could help boost consumer spending which was one of the pillars of economic growth prior to the pandemic.
They said the 26.7 percent year-on-year surge in infrastructure spending in the first quarter provided some confidence that this form of employment-boosting spending gained traction and should continue at a fast pace for the rest of the year.
They said that the "surprise 31.6-percent jump of exports in March has added some more optimism to policymakers that the trend this year would be upward”.
"The possible constraints may lie, however, in supply chains’ responsiveness and the amorous view of top policymakers towards the peso appreciation of late," they said.