(Continued from Aug. 19, 2020)
ONCE approved by the FDA, the Philippines may reproduce the vaccine in the country, with the consent of Gamaleya. President Duterte has thanked Russian President Vladimir Putin for offering to supply the Philippines with doses of the vaccine.
Other vaccines on clinical trials are those being developed by Sinovac, Sinopharm and Fosun Pharma in China; AstraZeneca and University of Oxford in the UK; Pfizer, Moderna and the National Institute of Allergy and Infectious Diseases in the US; and BioNTech in Germany.
FDA Director General Eric Domingo expressed hope that with more than 100 vaccines being developed across the globe, one will become available by the end of the year or early next year. Alongside the search for the vaccine, the Philippines is joining the clinical trials of medicines such as Avigan and Remdesivir as possible COVID-19 treatment. This gives us hope that we can fully reopen the economy sooner than later, and allow Filipinos to go back to work to be able to earn and feed their families.
The impact of the border lockdown and quarantine restrictions has decimated thousands of business establishments in Metro Manila and other parts of the country, as evidenced by the 16.5-percent contraction of the gross domestic product in the second quarter. The recent return of Metro Manila and nearby provinces to modified enhanced community quarantine (MECQ), for example, reduced power demand in the Luzon grid by around 700 megawatts, which means a lot of factories and commercial establishments halted operations.
Fortunately, we have solid economic fundamentals that continue to shield our financial system from the crisis.
The peso, for example, breached the 49-per-US dollar level last week as our gross international reserves climbed close to $100 billion as of end-July.
A survey by the Department of Finance among businessmen shows that some industries are beginning to recover, including real estate, telecommunications, and water and energy sectors. The businessmen, however, favor a further opening of the economy, subject to health and safety protocols, to allow the movement of more workers and consumers.
We may not see a substantial recovery in the third quarter, but the onset of the fourth quarter may shore up demand and consumer confidence as long as we stay on the course of economic reopening while containing the spread of the virus and making the necessary preparations for mass vaccination.
Critics of the administration, or the doomsayers, meanwhile, are running out of ideas in their bid to put down the Duterte administration.
The economy may have faltered in the second quarter, but it remains fundamentally sound and strong.
Bangko Sentral ng Pilipinas Governor Benjamin Diokno correctly reminded the economic pessimists that the 16.5-percent contraction in the second quarter gross domestic product was just temporary. I share Mr. Diokno’s sentiment. Our economy has strong fundamentals: falling interest rates, an appreciating peso, sound external sector with international reserves close to $100 billion and low debt-to-GDP ratio.
The economy slumped because of rigid, nationwide lockdowns that impaired the movement of people and goods. But the lockdowns will soon ease. We should look forward to better days ahead.
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This piece first came out in Business Mirror on July 14, 2020 under the column “The Entrepreneur.” For comments/feedback e-mail to: mbv.secretariat@gmail.com or visitwww.mannyvillar.com.ph./PN
