The government needs to pump additional fiscal stimulus to arm more Filipinos with cash and provide additional support to the economy, Pamantasan ng Lungsod ng Maynila President Emmanuel Leyco said.
The COVID-19 pandemic has driven millions of people out of work and more into poverty, as employers bled due to the lockdowns and existing quarantine restrictions meant to control the coronavirus outbreak.
“We have to put money in the pockets of our consumers. Right now, unemployment and underemployment are not helping. We need to put more programs that will create jobs or more money in terms of ayuda (cash aid),” President Leyco said in an interview with One News on Wednesday, January 6, 2021.
While the ultra-low interest rate environment created by the Bangko Sentral ng Pilipinas provides support to industries, it’s not enough to lift the country’s consumption-driven economy.
“What we would like to see is a stimulus that will produce more in the market, more output. Stimulate the manufacturers,” added President Leyco, once an economics professor at the Asian Institute of Management. “Monetary intervention alone is not enough. We need to put more packages for the producers and the consumers to stimulate the market and make it more vibrant.”
The PLM President also expressed concern about rising inflation, saying that the steady pickup in the prices of basic goods in the last four months of 2020 may not be “transitory” as the government’s economic team thinks.
“More investments and incentives should be given for producers to ensure stable supply, especially for food items,” President Leyco added.