COVID-19 EFFECTS ON THE PHILIPPINE ECONOMY STATUS QUO IN YEAR 2022

Since year 2019 the Philippine Economy status quo is stable it is not that hard to
achieve it again. After 3 years of battling with the pandemic the Philippine economy is
affected due to some instances. The education, Foreign Exchange, Investors in the
Philippine, Debt f the Philippine and also the trade openness of the Philippine. To show
some proof the following data show’s everything on how the pandemic become an outbreak
that cause Philippine Economy breakdown.
The ongoing coronavirus impact is expected to result in a subdued growth for the economy
in 2020.

Those are the following result of Pandemic in the Philippines

 Low Quality education
- A low-quality education is rigidly implemented routines, through the COVID-19
outbreak the education nowadays is poorly resourced or unsafe learning
environments and inappropriate teaching practice. Having a low quality of
education. Not all students we’re granted to buy their needs to learn because
everyone is affected in the said virus, there is no exception.

TOTAL OF ENROLLEES
Year 2019-2020 27, 790, 114

Year 2020-2021 23, 987, 944

So, as you can see almost 3,802,830 are not enrolled during the school year 2020-
2021. People were saying, especially the left and the opposition, that nobody
will enroll because of COVID and they were calling for academic freeze.

If the COVID 19 will still be a pandemic to the upcoming years there are
possibilities that the enrollees will decrease. There low-quality education during
the pandemic because of lack of learning materials and the students will become
more related to computer which has a negative effect to the students and it can
also be a negative effect for the students if they we’re not a digital literate
person.

- Foreign Exchange
During the pandemic outbreak the level of foreign exchange are down and the market are
not functioning. There is no import/export restrictions are implemented during the
pandemic period.
On the other hand, the importation of health equipment and supplies deemed critical or
needed to address the COVID-19 public health emergency shall be exempt from duties,
taxes, and fees pursuant to Republic Act No. 11469, otherwise known as “Bayanihan to
Heal as One Act”. Import requirements, application and registration process of needed
medical supplies, equipment and protective equipment as COVID-19-critical commodities
have been streamlined. The COVID-19 pandemic has barely made a dent on the Philippine
peso, which remained stronger than the US dollar as of mid-April, given strong
macroeconomic fundamentals, the Department of Finance. In an economic bulletin, Finance
Undersecretary and chief economist Gil S. Beltran noted that the peso strengthened against
the greenback by 0.04 percent as of April 15—when it closed at 50.63:$1 from 50.66 at end-
2019.

Philippines’ gross domestic product (GDP) to grow at 2.0% in 2020 following an

“enhanced community quarantine” imposed by the government in March to
stop the spread of the novel coronavirus disease (COVID-19) in the country. But
ADB expects a strong recovery to 6.5% GDP growth in 2021, assuming that
COVID-19 infections in the country are curbed by this year.

Debt of the Philippines

Philippines: Gross External Debt

Mnemonic GDBTEXT.IPHL

Unit Mil. USD, NSA

Adjustments Not Seasonally Adjusted

Quarterly  5.17 %

Data 2020 Q3 91,978

2020 Q2 87,453
Series Information

Source Central Bank of Philippines (BSP)

Release External Debt - Quarterly

Frequency Quarterly

Start Date 12/31/2005

End Date 9/30/2020

Reference Last Previous Units Frequency

Outstanding Oct 2020 15,549 360,355 Mil. Monthly

Public Debt - Pesos,
Domestic NSA

Outstanding Oct 2020 11,639 13,707 Mil. Monthly

Public Debt - Pesos,
Foreign NSA

Government Sep 2020 -138,525 -40,074 Mil. Monthly

Budget Balance PHP,
NSA

Government Sep 2020 350,940 283,306 Mil. Monthly

Expenditures PHP,
NSA

Government Sep 2020 212,415 243,232 Mil. Monthly

Revenues PHP,
NSA

Gross External 2020 Q3 91,978 87,453 Mil. Quarterly

Debt USD,
NSA

Outstanding 2020 Q2 2,212,798,586,80 1,954,822,676,00 NCU, Quarterly

Public Debt 0 0 NSA

The debt of the Philippine during the pandemic is higher. The Philippine
government's outstanding debt stood at P9.615 trillion as of end-August 2020 amid the
coronavirus crisis, the Bureau of the Treasury said on Wednesday, September 30.
Total debt stock in August grew by P450.9 billion or 4.9% from end-July 2020, primarily
due to domestic securities issuances. From the end-December 2019 level, debt increased by
24.4% – equivalent to P1.88 trillion. Of the total outstanding debt stock, 30.2% were
sourced externally, while 69.8% are domestic debt.
Total domestic debt amounted to P6.7 trillion, 7.3% higher compared to the end-July level,
while overall external debt amounted to P2.9 trillion or lower by 0.2%.

Trade openness of the Philippine

With the country’s shrinking economy and 45 percent unemployment rate as reported in
the news, Covid-19 could now be more of an economic problem than a health dilemma for
Filipinos. Thus, if the world’s economic superpower and trade liberalization advocate like
the US is already fortifying its economy from import surge with its “Buy American”
challenge, Filipinos have more reasons to “Buy Pinoy, Buy Local,” if only to help save the
country’s pandemic-battered industries.
Aggravating the double-digit unemployment rate that impacts the country’s economic
lifeline is the mass repatriation of overseas Filipino workers (OFWs).
This is a double whammy for the government because it will not only spike the number of
unemployed Filipinos but also cause a significant reduction in dollar remittances, resulting
in less consumer spending and less revenues in duties and taxes for the government.

Thus, if we do not tighten our trade policies and allow import surge from giant exporters
like China to happen, this might lead to the country’s economic collapse. And should this
happen, as we struggle with the country’s shrinking economy, double digit unemployment
and dwindling trade opportunities, the dumping of imported goods into the Philippine
market by global trade giants could only worsen the Filipinos’ almost abject economic
situation. After three years of battling with this kind of pandemic the Philippines has a
Low economy that is because of the outbreak the Government money were not enough to
sustain all the Filipino needs. Philippine economy may lose between P276.3 billion and P2.5
trillion, depending on how the coronavirus pandemic develops in the next few months
according to government think-tanks. Without employees there is no income and tax. If the
market place we’re not functioning. If COVID 19 still be there until 2022 the economy will
continue to breaking down. Unemployment, Low production, Low consumption of goods
and services there is no wealth that is not economy meant. An economy is a system of
making and trading things of value. It assumes there is medium of exchange, which in the
modern world is a system of finance. This makes trade possible. I thought the year 2022 in
the Philippines if there is no change can lead into a Socio-economic or having Economic
collapsed issue wherein those are factors that have negative influence on an individuals'
economic activity including lack of education, cultural and religious discrimination,
overpopulation, unemployment and corruption.
The Government’s infrastructure program is facing further delays due to the quarantines
outbreak, as well as the repurposing of funds to contain the pandemic. While slower
construction industry growth is seen this year as most activity is concentrated in areas
affected by the Enhanced Community Quarantine. Philippine industry will die.