ASSESSING THE ECONOMIC IMPACT OF COVID-19 TO THE PHILIPPINES IN THE

MICRO- PERSPECTIVE

PHILIPPINES:ON THE VERGE OF COVID-19 PANDEMIC

Facebook, google, news all over the television and radios , have one thing in common,
they are all pertaining to the Pandemic which has spread all over the world. This is the
Corona Virus Disease which was started late last year at the province of Wuhan, China.
It is a pneumonia like disease that could be transmitted thru droplets. A single person
infected, infects a minimum of 2-5 person. The first case of COVID-19 in the country
was last January 30,2020. And two days later, the Philippines recorded its first death
outside China.

Because of the alarming growth of COVID cases in the country, President Rodrigo
Duterte has placed the entire Philippines under a state of calamity to allow the
government to tap more funds to contain the spread of the coronavirus disease 2019
(COVID-19).The state of calamity will last for six months unless earlier lifted or extended
by the President, according to Proclamation 929 signed by Duterte on Monday.“Despite
government interventions, the number of cases of COVID-19 continues to rise,” the
proclamation stated. Duterte also tasked all law enforcement agencies, with the support
from the Armed Forces of the Philippines, “to undertake all necessary measures to
ensure peace and order in affected areas, as may be necessary.”The proclamation also
provided for the implementation of a Luzon-wide enhanced community quarantine
aimed at curbing the further spread of the deadly virus.

With this declaration from the President, only groceries, pharmacy supermarkets and
other establishment that provides basic necessities are only allowed to open during the
said quarantine. Aside from that, schools, and other offices are mandated to temporarily
closed until further notice. Small and ordinary individuals are very much affected with
this, why? The supermarkets are open, yet they have no means to buy things they
needed for they are no longer working! The government have requested DOLE to give a
5000PHP to every private workers that had been affected with the quarantine as a help.

The demand for Face masks, alcohols, sanitizers and disinfectants are increasing so
much that some people took advantage and hoard this items selling it into double or
even triple from the original price itself.
Philippines witnessed a slower economic growth in the first half of 2019, compared to
2018. The country saw a sustained economic growth of 6.3% between 2010 and 2018,
while the growth slowed down to 5.5% in H2 2019. The World Bank estimates
Philippines to witness full-year 2019 economic growth of 5.8%.

The ongoing coronavirus impact is expected to result in a subdued growth for the
economy in 2020.China is Philippines’ top trading partner accounting for 18.8% of total
trade, according to the Philippine Statistics Authority (PSA). In November 2019, 22.9%
of Philippines’ exports were to China, the biggest importer for the country. Philippines
imports account for approximately 20% of goods from China followed by Korea and
Japan at 10% each.

The Central Bank of the Philippines (BSP) noted that the coronavirus outbreak could
have a major impact on Philippine economy over the next few months.Ruben Carlo
Asuncion, chief economist for Union Bank of the Philippines, noted that the coronavirus
outbreak could cost the Philippine economy $600m or 0.8% of economic growth if it
lasts for six months, as quoted by CNN Philippines.

And with this community quarantine, I could say that our Economy will decrease again
overall. But taking the micro side, those who belong to the affected establishments will
be much affected for they have no choice but to temporarily closed their businesses in
order to avoid the spread of the Virus itself. But then again it would not be easy for them
for within that period they have no income at all!

For the small businesses that cater basic necessities , I must say this is the time their
income will rise. Basically people tend to buy from them for survival. But above all, I just
wish for this Pandemic to end very soon. I miss the fact that people can freely go out
from their houses not thinking of any virus which may infect them and their love ones, I
miss going to school and coming home at the end of the day knowing that my family s
safe.