TERM PAPER

The Impact of Covid-19 to the Philippine Economy

I. Introduction
Our country is experiencing tremendous recession at the moment brought about
by the Corona Virus Disease 2019, otherwise known as COVID-19. Not just our country
but also in other parts of the globe. Coronavirus disease (COVID-19) is an infectious
disease caused by a newly discovered coronavirus. It is originally from Wuhan, China
and it became an outbreak worldwide. It is also believed that the corona virus outbreak
will have a severe economic impact not only to our country but to the international
economy.
Subsequently, it drastically affects the Philippine economy to a point that
community lockdown has been strictly implemented that prohibits people from going
outside their homes and became the major cause of temporary cessation of most
businesses, industries, and airlines. The disease is such a threat to the people around
the world that’s why our country is now under the state of calamity and the government
has to declare health emergency because the number of cases are escalating
continuously. Hundreds, if not thousands of deaths have already been recorded
nationwide. People are also worried not just on the danger brought by this global
pandemic but they are worried about their life, their resources, and family because they
don’t have the means to support their love ones anymore, especially that they need to
cease from working. The only thing that they can do is to rely on the relief goods that
the local government provides and other help from different sectors of community.
On the other hand, the government sets programs to lessen the tension. This
program will require cooperation from every citizen so that battling for this pandemic will
be easy. The program will encourage Filipino people in staying at home to help stop the
transmission since the transmission happens human to human. But of course, this is the
first time in the history of the world to have this kind of pandemic and such policies
might be difficult for the Philippines to adapt since we belong to a third world country.
The question that most people would probably ask is that, will it be an effective
solution to the status quo of our nation knowing that our country does not have enough
financial capability to give support to its people? if this pandemic continues to spread
that would require extension of the lockdown, what will be the contingency plan of our
government? Do they have enough fund to support the needs of 104 million Filipinos?
Needless to say, our GDP declines and prices of goods start to increase as well.
This crisis has called the president to have an emergency power in intervening with this
calamity and that he asked to allocate budget for every Filipino household in order to
provide for their needs.

II.OBJECTIVES

 To provide information on the current economic situation brought about by the global
pandemic.
 To study the effect of pandemic in GDP and GNP.
 To investigate the variables and to know its impact to the economic activities of the
country.
 To make an assessment of sustainability of the government in terms of resources.
 To discuss alternative solution.

III.BODY

Coronavirus, is partly a problem of our economic structure. Lockdown is placing

pressure on the global economy. We face a serious recession. This pressure has led
leaders to call for an easing of lockdown measures. The economics of collapse are
fairly straight forward. In securing the economic stability there should be a great
productivity in the industry. In current situation of Philippine economy it is big
challenge to stabilize the economic development knowing that Covid 19 continuously
affecting the nation which brought the funds spend into a major cost to support
medical needs as well as the basic needs of each family belong to the enhanced
community lockdown. There are variables that should be taken in consideration in
the country current situation that contributed to the economic activities which may
lead in getting worst if this will not be address with appropriate action plan that the
government should be prioritized. Human needs vs. human wants, food and
medicine are the major category that should be well funded especially health
services. The government should strictly monitor and align the budget to the
program that ensure to minimize the numbers of infected people in many cities. The
situation still remains unpredicted it means that there is no certainty to control the
national budget to be use. If the event will continue because of Covid-19 the industry
which give the economy the strength maybe it may fall that results to economic
crisis.
 Problems in economics and factors in production. Leaders worried if this
pandemic continues to rise and take longer. The economics of collapse are fairly
straight forward. Philippine workers lose jobs, stocks plunge, shops close as
pandemic hits economy. Most of business firms decide to stop operation. If they
can’t produce, they can’t sell things. which means they are less able to employ.
Labor is also one factor to be considered in production of goods and services. It
affects vastly especially with our Gross Domestic Product or Gross National Product.
It started to decline because temporary unemployed. more people lose their jobs or
fear losing their jobs. So they buy less. And the whole cycle starts again, and we
spiral into an economic depression.

Gains and Trade. Gross domestic product or Gross national product. It started to
decline economic income and economic activities. With moderate declines in private
consumption, investment and exports and offsetting increases in government
spending. The Philippines became the first country to shut its financial markets and
stopped trading until further notice, according to the Philippine Stock Exchange and
the Bankers Association of the Philippines.

Demand and Supply. Economists have focused on its economic impact and on
what central banks and governments should do in response to an unusual
simultaneous disruption of both supply and demand. There is also an urgent need to
ramp up the production of essential commodities such as ventilators, gloves, and
masks; to provide hospital beds; and to ensure that required personnel can
themselves turn up for work. Despite disruption to supply chains and restrictions on
the population, essential goods and basic services must be provided, firms must be
kept from going bankrupt, and employment and incomes must be maintained.

The nation’s income in terms of the pandemic we are experiencing right now. UNITED
NATIONS: The global economy could shrink by up to 1 per cent in 2020 due to the
coronavirus pandemic, a reversal from the previous forecast of 2.5 per cent growth, the
UN has said, warning that it may contract even further if restrictions on the economic
activities are extended without adequate fiscal responses. The data demonstrate the
worst case scenario. The income probably decreased because many industries stopped
in operation. The tourism of the country which put up income even the taxes are not
able to give by workers to the nation to be utilized. Production and Growth
unemployment rates rise as the impact of the global economic recession spread all over
the world. There is consensus that governments will have to support businesses and
workers who are losing income.

General Policies
1. Increase emergency savings- additional savings can help to provide all
necessities in emergency cases.
2. Point out and find ways on those cut back- by eliminating discretionary items and
services
3. Be wise in decision making and live within your resources- put a limitation to any
resources that you have.
4. Continue gaining knowledge while at home- educating ourselves while under
quarantine will be a good investment and will help reduce depression and anxiety
caused by the calamity.
5. Build up and develop new skills.

Solution to the Problem

We know that our country is experiencing recession with limited financial

income and economic activity. If this pandemic continuously spread and number
of people affected by the virus will continue to rise, extension period of
quarantine is possible. It also means that our financial budget will be affected.
The government will need to extend provision of food, medicine, and other
necessities for every Filipino. It is possible to experience scarcities of resources
and most likely the Philippines will incur new debts to other country.

The best solution to alleviate this kind of problem in our country is to

cooperate and follow the regulations of the government to help stop the spread of
the virus and we so can live a normal life again. Each Filipino can also help by
having awareness of how the virus spread. If they are aware of the protocols,
they can surely prevent this from spreading.

Aside from the physical health that we should take care, is also our mental
health. Everyone should also take care of their mental health as many people
suffering from depression and anxiety because of the wraths of this global
pandemic. This kind of pandemic brings so much depression to many that is why
we should minimize doing things that can worsen our trauma, anxiety and
 depression. Also, stop spreading fake news on the social media as this could
aggravate anxiety and depression that every person experiences.

Alternative Course of Action

1. Reinforcement of methods and system for enhance community quarantine.

2. Work from home by the employees delivering critical services and by the
employees who can perform their works online.
3. Online lessons/discussions should be encouraged among the teachers so that
education will still be delivered to the students and that latter’s learning will not be
thwarted by the virus.
4. Scheduling of “market days” for every barangay to minimize the number of
people going to the market and that they can still able to maintain social
distancing.
5. Community engagement by means of establishing and utilizing clearance
processes for timely dissemination of messages and materials in local languages
and adopt relevant communication channels
6. Establishing a large scale community engagement to ensure preventive and
individual health hygiene practices in accordance with the Department of Health
sanitary guidelines.
7. Systematically communicate information and feedback mechanisms such as
community perceptions, knowledge, and attitudes.

Conclusion
To sum it up, the economic crisis started to collapse and later spread the adverse
economic instability to other sectors of the economy. The financial institutions such as
banks and large manufacturing companies will probably face with financial troubles that
threaten downfall of other large organizations in the economy. Slow economic recovery
in the country is attributed to the inefficient economic policies implemented. Covid 19
surely brings painful impact on economic conditions in the country. In such
circumstances regional solutions become more difficult and the power question that put
the possible ways in critical state. However, many necessary tasks that the government
will do to prevent downfall in Philippine economy . In addition, strong ties of regional and
city governments will definitely help to prevent further damages. In seeking to explain
the crisis, there are variables that we set and need to be examined regarding economic
stature to come up with other possible solution to address the crisis into more damaging
cost.
 Bibliograpy

https://economictimes.indiatimes.com/news/international/business/global-economy-could-shrink-by-almost-1-in-2020-
due-to-covid-19-pandemic-united-nations/articleshow/74943235.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

https://economictimes.indiatimes.com/news/international/business/global-economy-could-shrink-by-almost-1-in-2020-
due-to-covid-19-pandemic-united-nations/articleshow/74943235.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst