51% of PH Firms Uncertain of Recovery from Pandemic

Asia Development Bank (ADB) conducted a survey in May of 2,481 enterprises with the Finance Department of the Philippines (DOF), showing that 51% of companies are unsure if they can recover, 30% said they may need 6 months to return to normal, and 18.6% were optimistic they would recover fully within 3 months post-ECQ (enhanced community quarantine).

48% of the respondents were based in the Metro Manila area. 52% were micro businesses, 27% were small firms, 13% were medium-sized companies,  and 8% were large enterprises.

Kelly Bird, ADB Country Director for the Philippines said that “the enterprises were broadly representative of the industrial structure with 35% in wholesale, retail, accommodation and food services, 10.5% in manufacturing, 9% in construction etc.”

Bird also said, “ADB is projecting unemployment in Luzon will peak around 22% in the June quarter and steadily decline as the economy gradually opens. We project unemployment at 12% in Q4 of 2020 and 9.0% by Q2 of 2021.”

“We won’t see a return to pre-COVID unemployment rates until 2022. This is because employment recovery lags economic recovery.”

The complete survey will be released later in the month of July.