P3B losses per week expected as NCR Plus shifts to Alert Level 3

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THE shift from Alert Level 2 to Alert Level 3 for the National Capital Region (NCR) and its neighboring provinces will result in a gross value added (GVA) loss of about P3 billion per week, the country’s economic managers said Friday, Jan. 7, 2022.

While this may delay the goal of shifting to Alert Level 1, the Development Budget Coordination Committee (DBCC) believes the shift is a “temporary setback and is a necessary adjustment in view of the new coronavirus variant.”

In economics, GVA is the measure of the value of goods and services produced in an area, industry or sector of an economy.

The group said it will closely monitor the impact of the Covid-19 surge. The Alert Level 3 in the NCR and its neighboring provinces which includes Metro Manila, Bulacan, Cavite, Laguna and Rizal was raised from January 3 to 15.

“As we previously said, we are in a better position to manage possible spikes — we have enough vaccines and funding for booster shots; we have increased hospital capacity; we now resort to granular lockdowns; and, from all indications, the Omicron variant results in less severe cases, especially to those who are fully vaccinated,” the DBCC said in a statement.

On Thursday, Jan. 6, the government’s Covid-19 Task Force escalated the quarantine status of 14 more areas, placing them under Alert Level 3 from Jan. 9 to 15 due to the rising Covid-19 cases.

These areas are Dagupan City, City of Santiago, Cagayan province, Olongapo City, Angeles City, Bataan, Pampanga, Zambales, Naga City, Iloilo City, Lapu-Lapu City, Batangas, Lucena City and Baguio City.

As of Jan. 5, the DBCC said a total of 110.9 million doses have been rolled out. Of this, 57.3 million and 51.1 million doses were administered as the first dose and complete dose, respectively, while 2.5 million doses were administered as booster doses.

The economic managers are optimistic that government spending will continue to accelerate, which will help the economy bounce back, banking on the recent signing of the General Appropriations Act (GAA) for 2022.

The GAA 2022 will prioritize programs, activities and projects that seek to sustain the administration’s efforts to effectively respond to the challenges brought about by the pandemic.

“The approved 2022 National Budget and the extension of the 2021 GAA will help strengthen the country’s resilience against the emergence of new variants and future economic shocks,” the DBCC said.

Moreover, the economic managers maintain its stance of promising economic prospects for the year, but it urged Filipinos to play their part in the recovery by getting vaccinated, availing of booster shots, and strictly adhering to the minimum public health standards to help support the gradual and safe reopening of the economy. (KOC WITH PR)

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