Wealth for health
The price we have to pay to live nowadays. (Photo: IISD)
When China imposed restrictions and a very strict quarantine last month to attempt a ‘zero COVID status, people weren’t exactly happy with it. Businesses closed, trade was severely affected, and the economy suffered.
Comparing China’s economic status from what it was a year ago, the numbers aren’t looking good. Retail sales went down by 11.1%, more than the 6.1% prediction in a Reuters poll. Industrial production was expected to grow by 0.4% but instead, it went down by 2.9%. Manufacturing, which is taking the brunt of the suffering—particularly the auto and equipment manufacturing sector—fell by 4.6%.
Ting Lu, Chief China Economist at Nomura believes that “local lockdowns will still severely impact the production-end of the economy in May and view a quick turnaround as all but impossible.”
Local problems
Given that China is one of the Philippines' main trading partners, it’s safe to assume that Filipinos will have another thing to worry about in the next few weeks. According to Oxford Economics assistant economist Makoto Tsuchiya, the Philippines should expect high inflation due to a lower demand for exports.
From January to March 2022, China was the Philippines’ second-biggest export destination earning up to $2.88 billion in the first quarter. On the other hand, China was also the Philippines’ top source of imports with a larger $6.1-billion. All of that is expected to slow down. It’s not like you can continue shipments across countries through a Zoom call.
The Bangko Sentral ng Pilipinas (BSP) already expects the rate of increase in prices of basic commodities to average 4.3% which was beyond the government’s prediction of 2-4% as “manageable price hikes.” As an ordinary citizen of the country right now, let me tell you, it’s most definitely not manageable at all.
Supposedly, there is light at the end of every tunnel. Unfortunately, the one we are all in right now is at risk of producing a generation that lacks the proper education to improve our economic status.
The Asian Development Bank (ADB) said that the prolonged closing of schools in the country would have ripple effects even a decade after COVID. It didn’t help that online classes weren’t exactly a success.
Socioeconomic Planning Secretary Karl Kendrick Chua told reporters last week that “Severe disruptions in school education during the COVID–19 pandemic have impacted children through their formative years, which will affect their employment opportunities and earning potential for many years after school.”
The ADP published “Potential Economic Impact of COVID-19-related School Closures” which talks about how global GDP will be reduced by 0.19% in 2024, 0.64% in 2028, and 1.11% in 2030. So much for the youth being the “hope of the future.”
