Deep recession hurt businesses, worsen unemployment

The president of the Filipino-Cebuano Business Club (FilCeb) said the economy is falling into deep economic recession. Businessman Rey E. Calooy said the sharp economic downturn and weak job market many businesses are now at higher risk of default.

FilCeb is a group of Micro, Small and Medium Enterprises (MSMEs), some of which are struggling at present due to lack of business activities after the lockdowns since March 2020. Calooy said the Philippine Institute for Development Studies (PIDS) even predicted that the Philippine economy could lose up to P2.5 trillion which is 58 percent of the national budget.

He said that in the survey of the Social Weather Station (SWS), 45.5 percent joblessness among adult equivalent to around 27.3 million Filipinos are now without work. He said that the Philippine economic managers have reported a negative 16.5 percent Gross Domestic Product (GDP). He expects the 2020 3rd quarter GDP to be worse.

He said even the International Monetary Fund (IMF) has reported that the Philippine economy will suffer the worst drop in Southeast Asia. Calooy added that the curve of the tourism industry has flattened and there is no sign that its once vibrant business will be revived. He said that several tenants in malls were forced to close operation due to lack of market and a big overhead like rent, salary, lights, and water.

The businesses today are themselves going closer to customers, whereas before the pandemic, the customers were the ones going to the malls. He said that when a business closes shop, the employees are the ones who are hit hard.