COVID-19 Damages Philippines Economy

Credits Photo: Philippine Canadian Inquirer
 
 The Philippines has a mixed economy with private-owned business regulated by government policy. It is considered a newly industrialized economy and emerging market, which means it is changing from an agricultural-based economy to one with more services and manufacturing. The Philippine economy has produced an estimated GDP (nominal) of $356.8 billion with the primary exports includes semiconductors and electronic products, transport equipment, garments, copper products, coconut oil, and fruits.

    President Rodrigo Duterte, who came to power in 2016, is committed to improving the country’s infrastructure in order to create jobs and business opportunities and boost economic growth. His “Build, Build, Build” program is made up of 75 major projects covering transportation, power, water supply and flood management. This mammoth endeavor envisages a total spend of at least 8t pesos (US$150b). The Government is planning to increase infrastructure spending to approximately 7% of GDP by 2020. The Philippines is the world’s 34th largest economy, with the potential for considerable growth in the years ahead. Both the Government and the central bank have taken steps to make the country a more attractive destination for foreign investors. There are challenges to overcome, including bureaucratic obstacles, but the country is rightly planning for a brighter future.

  

Photo Credit: ABS-CBN News

  But as we are facing a pandemic, Covid-19 is doing economic damage to the Philippines as well. The Philippines GDP growth has averaged around 6% annually for the past decade, but it could actually contract this year. As many as 1.2 million Filipinos had lost jobs as the economy dives, and as a lockdown limits economic activity. A $23 billion rescue package is being hurriedly put together, but even this relatively large amount may not be sufficient to avoid serious economic damage. 

  

Photo Credit: Nikkei Asian Review

   During a recent national address, the usually tough-talking Presidents Rodrigo Duterte admitted that the “Government is desperate now. I am desperate now.” In many ways, this tragic outcome was far from surprising. Across the world, Duterte’s fellow illiberal populist have bungled the initial phase of the crisis, the period when they had time to listen to medical experts and put measures into place to reduce the spread of the virus.

    Although Duterte has worked hard to silence dissent in the country, doctors are now publicly complaining about the lack of protective equipment, middle class Filipinos are openly complaining about the lack of financial support for certain sectors hit hard by the lockdown and some poorer Filipinos are complaining about their desperate struggle to survive the lockdown with dwindling resources. Public discontent and impatience is bound to increase, especially if the government fails to reassure the public that it is in control, such as by rolling out mass testing showing a credible decline in infections, or extending politics that help poor Filipinos meet their basic needs during the lockdown. Physical distancing in public transport is of course also observed, and so buses run at below half of their usual capacity which led to financial losses for operators who run on ticket revenue, and understandably to some companies choosing to stop operations at the moment.

    The on-going COVID-19 in the Philippines, the economic shocks of which will echo for years to come, will impact not only Duterte’s legacy but also the post-2020 scenario in the Philippines’ rapidly evolving political landscape.

 

References:

Sonny M. Angara, February 28, 2020. "Building a resilient economy"

https://businessmirror.com.ph/2020/02/28/building-a-resilient-economy/

Wikipedia. "Philippines"

https://en.m.wikipedia.org/wiki/Philippines

Forbes Custom, October 31, 2019. "The Philippines in 2019: Resilient and Rising"

https://www.forbes.com/custom/2019/10/22/the-philippines-in-2019-resilient-and-rising

EY Reporting, November 8, 2019. "How the Philippines is planning for brighter future"

https://www.ey.com/en_gl/assurance/how-the-philippines-is-planning-for-a-brighter-future

Patricia Mariano and Christian Mettke. "BLOG: Towards a Better Normal: Philippine Government reorganises EDSA main road – Bus Service Modernisation"

https://www.changing-transport.org/reorganisation-edsa-main-road/


Comments

  1. MarnelieNovember 11, 2020 at 6:21 PM

    I'm also afraid of the impact of this pandemic in our country, though our government is really doing hard to lessen it. Just be positive, will make it on top.

    ReplyDelete
  2. Jeniesis DollagaNovember 15, 2020 at 12:50 AM

    Our situation today is really scary. Our future doesn't have certainty. I'm hoping that one day we will pass this pandemic.

    ReplyDelete
  3. Mary JoyNovember 17, 2020 at 10:26 PM

    Hola Diana! Our current situation is not easy. I am also afraid on what we will get through it until it stops. But we should not give up because this a lesson for us learn.The sun was never got tired in shining. When this pandemic ends, let's rise and shine again.

    ReplyDelete
  4. NicoletteNovember 19, 2020 at 6:33 PM

    I appreciate that you have searched the evidences of the president's projects for our country because some people in our country nowadays seems to hate him now that we have low on budget for this sudden crisis. I hope people should appreciate more of the president's work for an increase of our economy. Let's just pray that this pandemic shall end and we will rise again.

    ReplyDelete
  5. ZiaNovember 19, 2020 at 11:33 PM

    I really liked how you researched the true hard facts about our country and incorporated it into the blog. I also really liked the layout too and the references. Good Luck!

    ReplyDelete
  6. RobellNovember 22, 2020 at 8:16 AM

    Good Day, Diana. I loved how detailed your composition is and how it managed to explain everything that is going on. I loved how you included the effects of this pandemic to our lives. Nice work!

    ReplyDelete
  7. MaicaNovember 29, 2020 at 6:13 AM

    Good day, Diana! Your blog is full of information and I love how you managed to explain it very well.

    Also, I like how organized your reference and images you inserted in this blog.

    ReplyDelete

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