Philippines Inc seeks ‘massive’ stimulus to stem virus hit

To mitigate the damage, the central bank cut interest rates by 50 basis points on Thursday while President Rodrigo Duterte, who put the country under state of calamity, wants Congress to add to his 4.1 trillion peso budget this year.

MANILA: About a week into the month-long lockdown of the Philippines’ main island of Luzon, businessmen are calling for a 281 billion peso (US$5.52bil) fiscal stimulus to soften the economic blow of the spreading coronavirus outbreak that has displaced millions of workers.

More than 700 factories and 400 economic zones have been shut, while doctors are warning of a possible collapse in the healthcare system as infections rise. A recession is possible because consumption, the main Philippine economic engine, is set to slump as the lockdown could be extended nationwide and run longer, Capital Economics said.