Metro Manila (CNN Philippines, October 14) — A business leader is optimistic companies would record better performance in the last quarter with the continuing recovery — thanks to ease of movement — despite rising COVID-19 cases.
At a public briefing on Friday, Concepcion, former presidential adviser for entrepreneurship, said the last three months of the year are crucial for businesses as consumer spending is expected to spike with the gift-giving season.
“Hopefully maganda ang benta ng lahat ng SMEs kasi kung maganda ang benta nila, mas malaking working capital they can bring towards 2023,” Concepcion added.
[Translation: Hopefully, the sales of all SMEs (small and medium enterprises) are good so they can bring a bigger working capital towards 2023.]
The business leader acknowledged the rising COVID-19 infections, but noted that ease of movement tempers the impact of the health crisis on the economy.
“Medyo tumataas ang infection levels natin ngayon pero at least walang lockdowns, restrictions, tuloy-tuloy ang paglabas ng mga tao,”
[Translation: Our infection levels are slightly increasing, but at least there are no lockdowns, restrictions—people are constantly going out.]
COVID-19 watchdog OCTA earlier said the country might record up to 4,000 daily cases in October.
Latest Department of Health data, however, showed that daily cases from Oct. 3 to 9 averaged at around 2,000, reflecting a 10% drop from the previous week. Daily cases recorded on Sept. 26 to Oct. 2 were also 10 percent lower from a week earlier.
Meanwhile, Concepcion said SMEs need to prepare for higher working capital, especially now that prices of raw materials have almost doubled.
Last month, inflation, or the pace of price increase, accelerated to 6.9%, the highest rate in four years. The peso has also been losing ground against the greenback, no thanks to rising interest rates in the US to address high inflation as well.
This week, data showed the country’s trade gap further widened to $6 billion in August as total export sales only reached $6.41 billion, or a 2% contraction. On the other hand, imported goods in August amounted to $12.41 billion, posting a double-digit annual growth of 26%.
