The Philippines’ financial services sector entered the Covid-19 pandemic on a solid footing, thanks to decades of regulatory reform to address the vulnerabilities exposed by the 1997-98 Asian financial crisis. Strong capital buffers, high levels of provisioning and near-universal public health cover insulated the country from many of the impacts that other markets continue to wrestle with.…
The Covid-19 pandemic hit the Philippines’ consumption-driven economy hard, with forecasts from the IMF suggesting that real GDP could contract by as much as 9% in 2020. Strict lockdowns took a heavy toll on the energy sector in the form of a steep drop in demand for both electricity and fuel, yet local power providers took steps to ease the financial impact on customers by lowering rates…
Industry has made a sustained contribution to the Philippines’ economy in recent years, accounting for roughly 30% of GDP between 2017 and 2019. Sector growth was driven predominately by manufacturing, which comprised more than half of industrial output and 19% of GDP over the same period. Growth was constrained in 2020 as Covid-19 response measures impeded manufacturing activity and reduced…
Tourism played a central role in the Philippines’ economic development in the years leading to 2020, and an increasing emphasis on sustainability and responsibility underscores the sector’s importance for the years to come. While the popular island of Boracay has long drawn tourists, local authorities continue work to diversify destinations through the creation of tourism enterprise zones…
Transport operations and infrastructure development were acutely impacted by the Covid-19 pandemic as lockdowns stalled construction projects, movement restrictions prohibited travel even within communities and a ban on international arrivals in March limited aviation services for the rest of 2020. The government is now intent on restarting activity across the economy through infrastructure…
While Covid-19 has thrown the Philippines’ economy into flux, early indications suggest that construction and real estate is one of the most resilient sectors, and could provide a platform for national recovery. However, with construction projects delayed by lockdowns during the second quarter of 2020 and demand for office space and high-end residential developments weakened by mobility restrictions,…
The Philippine authorities have worked to develop the digital economy in recent years, prioritising strengthened internet service provision and a more competitive telecoms market. This proved to be fruitful after the onset of the Covid-19 pandemic in early 2020, which saw an increased reliance on online services and digital technologies during the country’s extended lockdown period. The pandemic…
After years of planning the Philippines’ universal health care (UHC) system is operative, strengthened by collaboration and the expertise of the private sector. The mandate to expand preventive and primary care to a growing population is wide, with a range of strategies to tackle both communicable diseases and non-communicable diseases (NCDs). Limited financing and a shortage of medical personnel…
The Covid-19 pandemic impacted countries and businesses around the world. In the Philippines lockdown measures in the form of community quarantines were imposed and many workers became unemployed. The Bayanihan to Heal as One Act (Bayanihan 1) was enacted on March 25, 2020 in response to the crisis. Included in the law’s measures were tax deferments, the non-payment of documentary stamp tax…
In 2020 the Philippines experienced one of the world’s longest and strictest lockdowns implemented to stem the Covid-19 pandemic. These measures presented significant economic challenges. Indeed, GDP contracted by 11.5% year-on-year in the third quarter of 2020 – albeit at a slower rate than the previous quarter, which saw a drop of 16.9%. Nevertheless, swift action was necessary, and in…
