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Calooy decries wrong decisions by politicians

THE Philippine economy suffered not only because of Corona Virus Disease (Covid-19) but also of wrong decisions by politicians in government.

Businessman Rey E. Calooy, president of the Filipino-Cebuano (FilCeb) Business Club made the new conclusion. FilCeb has more than 200 Micro, Small and Medium Enterprises (MSMEs).

Calooy said that looking at the statistics of Asian countries, the Philippine economy is the lowest. Other Asian leaders balanced the fight against Covid and protect the economy. Politicians are just managing people and have no knowledge about economy. They do not know how to raise income, and just impose taxes.

Calooy reminded government leaders of their supposed two rules such as “Corporate” and “Service.” Serving the people, and act like a corporation without imposing more taxes.

When the economy was locked down last May 2020, Calooy said the National Economic and Development Authority (NEDA) secretary suggested that government projects must continue so the economy will also continue to circulate.

 The NEDA secretary believes that government spending is important to accelerate the economy. But when his suggestion was not carried, the economy for the 2nd quarter of 2020 was 16.5 percent negative Gross Domestic Product (GDP). The NEDA secretary resigned.

“ So , the NEDA secretary was right, that if the economy will be locked down, don’t include government projects . Just control and manage it, especially that there was no traffic in building bridges, roads, drainage, and other infrastructure projects,” Calooy said.

Calooy said that we are technically on economic recession. The world economic recession happens on three successive quarters. In the Philippines, it’s the whole year of 2020.

Calooy enumerated that there was point two (0.2) negative GDP in the first quarter of 2020 even when the lockdown started in the middle of March. It was followed by 16.5 negative GDP in the 2nd quarter; 11.5 percent negative GDP in the 3rd quarter; and 8.3 negative GDP in the 4th quarter. In the average, it was 9.5 percent negative GDP for the whole year of 2020.

He foresees that the 8.3 percent negative GDP in the 4th quarter of 2020 will drop to 7.0 percent negative GDP in the 1st quarter of 2021 because the economic problem is a continuation to that of last year. ELIAS O. BAQUERO