Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Thursday the 2019 novel coronavirus that originated in China but spread to several countries across the world will likely reduce Philippine economic growth this year by 0.3 percent.
Diokno, however, said the country’s macroeconomic fundamentals remained solid and strong to weather potential headwinds from global and domestic fronts.
“The impact could be something like 0.3 percent. If for example 6.5 percent [growth target], minus 0.3 percent. Because this virus is less deadly than the previous ones,” Diokno said at the sidelines of the Management Association of the Philippines general membership meeting in Taguig City.
Diokno was referring to the impact of other recent pandemics, such as the severe acute respiratory syndrome in 2003 and Middle East respiratory syndrome-related coronavirus in 2012.
Diokno said the 0.3-percent GDP growth reduction due to nCoV would be felt in the first half, including 0.2 percent in the first quarter and 0.4 percent in the second quarter.
He said the tourism sector could be significantly affected because of the travel ban imposed to and from China.
Diokno said the Philippines’ external trade would not be significantly affected because “we are not an exporting country.”
Local health authorities confirmed three cases of novel coronavirus and one of them died while being admitted at San Lazaro Hospital in Manila. All infected patients are Chinese nationals”•a couple and a 60-year-old woman.
Finance Secretary Carlos Dominguez III said in a Senate hearing that while the dreaded disease “may restrain economic growth, we are standing by our target of 6.5 to 7.5 percent GDP growth projection this year” Julito G. Rada
Dominguez said it would be “a challenge” to estimate the economic cost of the disease because it was still in its early stage.