Novel coronavirus to have ‘short-term’ effect on economy —NEDA chief

The country’s chief economist brushed off the potential threat of the novel coronavirus to the Philippine economy given the efforts being undertaken to contain the spread of the disease.

“I think it's just short-term effect because given that there’s a lot of measures being done to minimize the Filipinos incurring the coronavirus,” Socioeconomic Planning Secretary Ernesto Pernia said in a press conference following the Economic Development Cluster Meeting in Manila on Thursday.

“It shouldn’t take long for that to have an effect on the economy,” Pernia said.

The Department of Health (DOH) earlier confirmed the very first case of novel coronavirus in the Philippines.

In a press conference, DOH Secretary Francisco Duque III said that a 38-year-old woman from Wuhan, China arrived in the Philippines via Hongkong on January 21.

Nevertheless, Finance Secretary Carlos Dominguez III said Chinese government acted “very swiftly” and been “very proactive” in the control of the disease.

“They are shortening the potential length and spread of this virus,” Dominguez said.

In a joint statement, the Economic Development Cluster said the government remains vigilant and well-positioned to address the domestic and external risks that can push down the economic growth trajectory over the medium-term.

“Externally, the primary downside risks include the slowdown in global growth, a lackluster recovery in trade, protectionist policies and other disruptions to the trade and supply chains, the volatility in global oil prices, disruptive technologies, and the global spread of communicable diseases such as the novel coronavirus,” it said.

On the domestic front, risks could emanate from natural hazards such as threats posed by the possible eruption of the Taal Volcano, the continued presence of the African Swine Fever in the country, water supply disruptions, slow implementation of the infrastructure projects, and policy uncertainties such as the delay in the passage of our tax reform packages, according to the economic team.

Pernia, for his part, said the coronavirus scare could also potentially be positive for the peso as Filipinos’ travel to China and adjacent Asian countries will be curtailed.

“Filipinos will be careful so they won’t be spending foreign exchange,” he said.

Discovered in December 2019 in Wuhan, China, the virus has since then spread to other countries.

As of Thursday, the nationwide death toll from China's viral epidemic has leaped to 170 with more than 1,700 infections confirmed. —LDF, GMA News