Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Philippine economy fears as coronavirus curbs reintroduced

CoronavirusAug 03, 2020 12:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Outbreak of the coronavirus disease (COVID-19) in Manila

By Neil Jerome Morales and Karen Lema

MANILA (Reuters) - The Philippines stock market tumbled on Monday after the government reimposed coronavirus lockdown measures in and around Manila in response to fresh outbreaks, dashing hopes of a swifter economic recovery.

The restrictions, due to take effect from Tuesday, are being reinstated after a group of doctors and nurses warned that the healthcare system could collapse as a result of surging COVID-19 cases.

"It's a bitter but necessary pill given the plight of our medical frontliners," said Francis Lim, president of the Management Association of the Philippines. "We hope the government will deep dive into our COVID-19 strategy and find more effective ways to execute it."

The Philippine economy had been one of Asia's fastest growing before the pandemic but is now on the brink of recession. The main stock index (PSI) fell as much as 3.9% on Monday, its lowest in more than two months.

Quarterly growth data is due on Thursday and economists expect a deeper contraction compared with the 0.2% contraction decline in the first quarter as the pandemic-induced lockdown shuttered businesses and sapped domestic consumption, a main driver of growth.

"We reiterate that the Philippines is indeed headed into a severe crash landing with the probability of the economy returning to its former glory any time soon now declining by the day," said Nicholas Mapa, economist at ING bank.

The country recorded a single-day record of 5,032 new infections on Sunday, taking total confirmed cases of COVID-19 to around 103,000.

Case numbers have grown exponentially since authorities relaxed a previous lockdown in June and the Philippines is now close to overtaking Indonesia as the country with the highest number of infections in Southeast Asia.

The government announced late on Sunday it was placing metro Manila and nearby provinces such as Laguna, Cavite, Rizal and Bulacan under so-called "Modified Enhanced Community Quarantine" for two weeks from Tuesday.

Public transport will be barred, working from home will be instituted where possible, and only one person per household allowed out for essential goods.

Philippine economy fears as coronavirus curbs reintroduced
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email