ING Bank Manila senior economist Nicholas Mapa
MANILA -- The novel coronavirus (2019-nCoV) outbreak is expected to hit the Philippine economy, with an economist looking at this year’s domestic output faster than last year’s 5.9 percent but “pressed to meet” this year’s 6.5-7.5 percent target.
In a report, ING Bank Manila senior economist Nicholas Mapa said while the obvious sectors that will be hit are the tourism and trade, there is an invisible slowdown expected on consumer behavior.
He said apprehensions on going out will make Filipinos likely stay home instead of doing their favorite past time -- malling.
“Fewer trips to the mall or shorter stays in the shopping centers mean less spending as window shopping is avoided and cups of coffee are now for takeout. An unconscious or conscious shift in spending patterns may result in slightly weaker consumption followed by a lackadaisical recovery in investment as consumers and corporates await more clarity on the developments related to the bug,” he said.
Mapa said lingering uncertainties are projected to “weigh on the economy the same way a cold or cough curtails all of us.”
He said it will still be “business as usual” for the most part “but in no means are we 100-percent efficient.”
“Thus, despite expectations for faster growth, unless we see additional stimulus from the government or a rapid clearing up of the situation, we may have to be content with growth faster than last year’s disappointing 5.9 percent print but once again pressed to meet our target for a 6.5-7.5 percent expansion,” he added.
Reports said the death toll from the epidemic has reached at least 425, including those outside China.
In the Philippines, the government has reported two confirmed cases of 2019-nCoV patients involving a couple from Wuhan, China, the epidemic’s ground zero.
They are a 38-year-old Chinese female who was first diagnosed with the virus, and her partner, a 44-year-old Chinese male, the first casualty in the Philippines. The man died last Saturday, February 1.
The government has imposed a ban for all travelers coming directly from Hong Kong, Macao, and China within the last two weeks.
The ban excludes Filipino citizens and holders of permanent resident visas issued by the Philippine government, but these individuals are required to undergo a 14-day mandatory quarantine. (PNA)
