(Bloomberg) — The Philippines is extending until May 15 the lockdown of its capital region and nearby areas that account for majority of its economic output as it tries to stem the coronavirus outbreak.Presidential spokesman Harry Roque announced the two-week extension of the lockdown in Metro Manila, central and southern parts of the main Luzon island — which have been under strict quarantine since mid-March — in a taped briefing Friday. President Rodrigo Duterte also placed Cebu, Davao and Iloilo provinces in Visayas and Mindanao under lockdown.All ports and airports can operate to transport goods, Roque said. Areas that are not under lockdown can continue construction projects, allow employees to go to work, have limited public transportation and open non-leisure shops in malls, he said.The Philippines joins other Southeast Asian nations in extending restrictions to contain the pandemic. Indonesia has extended stringent social distancing rules in its capital Jakarta, while Malaysia also kept its lockdown for two more weeks with some easing to allow limited travel.The virus outbreak could shrink gross domestic product by as much as 1% this year — its first contraction in more than two decades, Finance Secretary Carlos Dominguez said earlier this month. The government has sufficient cash but funds release is being held up, the finance chief said at the briefing aired Friday.Close to 1.7 million workers have been displaced since the lockdown started mid-March, the Labor Department said last week. The Philippines has 6,981 virus infections, including 462 deaths and 722 recoveries, as of Thursday.Some 35 billion pesos ($690 million) will be given to workers of shuttered small businesses, apart from the 205 billion pesos for poor families. An economic recovery plan is also being crafted to create jobs and boost growth.“This is negative for business but a positive step for the healthcare system,” said Manny Cruz, a strategist at Papa Securities Corp. “The impact of this extension is basically the same as it covers areas that are major contributors to the economy. It will be a slow and long process to get the economy back on track.”(Updates with more details and analyst comments)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
