In this time of COVID-19 pandemic, I can describe the Philippine economy in the stage of

business cycle as recession. It is because all the factors of the economy were affected. The Philippine
GDP growth rate decreased from 5.9% to 2.0%. It means that the production has dropped because
business operations are stopped due to Community Quarantines. Some businesses took the option of
having work from home but its output is still surely low.

Another characteristic of recession that I observe today is increase in unemployment rate which
is 5.3% from previous rate of 4.5%. Because of ECQ, people can’t go out. Demand in the market of such
goods weakens. Firms’ income decreased and their management have left no choice but to cut –off
employees. In cyclical unemployment, people are out of work because the economy has slowed and
there is no demand for whatever the workers make.

Production activities slowed down and productivity decreased during COVID-19 pandemic made
the GDP dropped. By year 2021, it is estimated that it would spring to 6.15%. Hopefully this pandemic
will stop very soon because it’s not just the human health that were affected but also our economies.
The recession is not only occurring in our country but to all countries in the globe as well.