How The Pandemic Scarred The Philippine Economy

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Avatar for Yukiro_maze
3 years ago

Economics is the study of the production, consumption, and transfer of wealth. It is incorporated with different concepts that provide knowledge of its branches and how an economy functions. The economy is one of the primary institutions of a society. It is constructed upon a particular nation's beliefs, culture, customs, legislation, and traditions. Furthermore, the development of a country's economy is determined by the choices made by the governing body, private sectors, as well as individual citizens. Its progress is based upon the state of economic growth that a nation currently has. Moreover, there are a lot of contributors or factors that can affect how a country's economic system will perform. In the Philippine setting, the country’s economy has had its fair share of stability and failure. Over the years our country has been trying to improve our economic system, however, there are unexpected challenges that deteriorate our previous efforts. In the year 2020 our nation, and other parts of the world, encountered a pandemic that struck the whole socioeconomic system. Once again, the Philippines’ progress of having economic steadiness quickly shrunk and is now struggling to get back up. As the pandemic continues to worsen; the foresight of having an effective economic system is now uncertain.

As the pandemic spread in all parts of the world, numerous leaders have struggled to keep their respective regions functioning properly. In the first phase of the COVID19 pandemic, government authorities around the globe imposed lockdowns on the country they are governing. In our nation, the kind of lockdown that our government has imposed included temporary closures of every sector of society. This involves educational facilities, government agencies, economic institutions, and tourism activities. People are not allowed to go outside of their houses unless they are going to purchase basic living necessities. With this in mind, the labor force was extremely affected. The upper class had no problem with the temporary closure of institutions because they are still getting paid, however, the working class or the laborers who are employed in a “no work, no pay” working environment completely struggled. According to the Philippine Statistics Authority (PSA), in the last year 2020, the annual unemployment rate rose to 10.3% which is equivalent to 4.5 million unemployed Filipinos. Economists around the country were alarmed with these numbers because they were the highest they’ve been since April of 2005. In January 2021, the PSA reported that the number of unemployed Filipino workers was around 4 million. This is respectively higher than the 3.8 million unemployed people in October 2020 and the 2.4 million in January 2020. On the other hand, underemployed individuals were approximately 6.6 million or 16% of the total employed people in January of 2021. The underemployment rate grew larger this year compared to the 14.4% of October 2020 as well as the 14.8% of January 2020. As seen from the numbers mentioned, the pandemic has deeply scarred the labor force of the country. A lot of Filipinos were laid off from work and are currently struggling to find work because of this pandemic. COVID19 created more barriers for people who lack the right connections for obtaining a job.

Going back to the first phase of the pandemic, the government assisted the public by providing “Ayuda". The Ayuda either consisted of food supplies or cash assistance or in some cities both are given. However, numbers of barangays around the country weren’t given equal assistance because of the “shortage” of supplies. There was a scarcity of resources and funds that led to the unequal distribution of government assistance. The shortage of assistance, as well as jobs and job opportunities, has pushed millions of Filipinos to poverty. The marginalized are the ones completely affected by this pandemic and as a lot of them are trying to pick themselves up, food and commodity prices significantly rose. The Philippine inflation rate had risen to 4.7% as of February 2021, this is reportedly higher compared to January of 2019. This has created more problems for the average citizens because the minimum wage does not entirely cover or support what they need. In addition, laborers who don’t have a fixed salary, for example, vehicle drivers, are not able to provide necessities to their families because of the limitations imposed by certain health protocols. To give a quick insight, jeepney drivers in metro manila were not allowed to operate, as a result, numerous jeepney drivers were left to beg people for money in the streets. Commodity prices are relatively high, but employed men and job opportunities are low. The economic system is in peril, and instances make it hard to bounce back.

Philippine economic debt blew up to P10.33 trillion in January 2021. Previous loans made by the administration were intended for public assistance and health-related response. Now the government is in trillions of debt because of the purchasing of vaccines. The country is in deep debt and with the state of our economy, it will take several years for it to be paid. Nevertheless, numerous citizens were concerned with the growing debt of the country and are questioning the act. It is reported that the previous loans were for the preparation for the vaccination programs in the country, however, the vaccines that are being used right now are mere donations. The public is wondering where are the vaccines that the government has bought? The public is considering that maybe the orders for the purchased vaccines still haven’t arrived. However, it has been months since the orders were made and the government stated that vaccine operations will start immediately this year 2021. The main question of the people is if the vaccine that is being used as of the moment came from donations, where are the vaccines that the government has promised to give? We are in trillions of debt but the vaccines are from donations, it doesn’t make sense for a lot of concerned citizens.

The study of wealth generation, consumption, and the transition is referred to as economics, one of society's main institutions. The Philippine economy has seen its significant number of successes and failures. In the year 2020, our country was hit by a pandemic that ravaged the entire socioeconomic structure. Because of the outbreak that gradually worsens, the viability of a functioning economic system is becoming increasingly doubtful. The Philippines' progress toward economic stability has slowed dramatically, and the country is now in a precarious position. The annual unemployment rate increased to 10.3 percent in 2020, resulting in 4.5 million unemployed Filipinos. These statistics shocked economists around the country because it is the highest it has been since April 2005. According to the PSA, there were about 4 million unemployed Filipino employees in January 2021. Moreover, there were about 6.6 million underemployed people as of date. As a result of the pandemic, many Filipinos have been laid off and are now looking for jobs. The pandemic has thrown millions of Filipinos into poverty. The price of goods is relatively high, but there are few working men and work prospects. The economy is in jeopardy, and it will be difficult for Filipinos to recover from the pandemic. The Philippine inflation rate officially increased to 4.7 percent in February 2021, the highest level since January 2019. Furthermore, in January 2021, the Philippine economy's debt reached P10.33 trillion. The government has previously made loans for public welfare and health-related emergencies. Initial loans were reportedly used to prepare for the country's vaccination programs, but the vaccines now in use are simply donations, which causes concern. The pandemic exposed existing problems within the system, as well as mutilated our country’s economy, and fixing it will be long before our eyes.

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