DEPARTMENT OF EDUCATION

REGION VII, CENTRAL VISAYAS

LAPU-LAPU CITY DIVISION
SCIENCE AND TECHNOLOGY EDUCATION CENTER
SENIOR HIGH SCHOOL
APPLIED ECONOMICS

PERFORMANCE TASK

“KUNG AKO PASULTION: ECON TALK”

GROUP MEMBERS NAME: Bahande, Atasha Nicole, Bontigao, Sai Niña, Brion, Jenny, Cabido, Asti Elaine,
Estardo, Monique, Lao, Dianne

DATE: April 16, 2021

TITLE OF ISSUE/CONCERN: Philippines: Social Assistance to Poor Households, Support for Small
Enterprises Key to Broad-Based Recovery

DETAILS OF THE ISSUE/CONCERN:

The Philippine economy is projected to contract by 1.9 percent in 2020. But there are good
chances that the country can bounce back in the next two years. Containment measures have cut off
income streams from seasonal wage earners and those engaged in entrepreneurial activities in
non-agricultural activities. The hotel and restaurant industry suffered the most, contracting by 15.4
percent. The economic contraction in 2020 will likely cause an increase in poverty. But economic growth
prospects and poverty figures are expected to improve in succeeding years driven by a rebound in
consumption, a stronger push in public investment, supportive fiscal and monetary policies, and the
recovery of global growth. The growth forecast for 2020 assumes that the containment measures will
gradually ease in the second half of the year, and economic activities return in some sectors of the
economy. Economic growth is forecast to return to above 6 percent in 2021 and 7 percent in 2022.

The Philippines has abundant external reserves and the lowest public external debt in East Asia
and the Pacific Region. The country has the highest reserve ratio in the region, indicating that monetary
policy has plenty of room to inject liquidity into the economy and help boost growth. World Bank Senior
Economist Rong Qian said the country's digital infrastructure will play a critical role in its economic
recovery.
GROUP’S OPINION: (What are your insights about the issue/concern)

As the group discussed about the article entitled, “Philippines: Social Assistance to Poor
Households, Support for Small Enterprises Key to Broad- Based Recovery,” the following text is
our accumulated opinion about this economic problem. Our country without a doubt, has been
plagued with these natural and viral circumstances all throughout the previous year and up until
now. I think these ideas to improve the overall quality life of citizens is too good to be true. The
scars we acquired from these battles should not be obliterated, and the flaws in our legal
system is important to be acknowledged by many. The economy of the Philippines has been
contracted to 1.9 % but it is still expected to go up in two years from 2020. The global outbreak
of Covid-19 that causes a decrease in the consumer growth for a particular circumstance that
only a few people can go outside which means that there would be a lesser profit. The
combined impact of these events on the economy has been wide ranging, fast, and deep,
halting investment activity and leading to the lowest consumption growth in the country, affecting
millions of households nationally as well as overseas Filipinos. Due to the effect of pandemic,
micro firms, small firms and medium-sized firms were affected and many suggested giving loan
support from the Government so that it won’t cause permanent damage. It is said that the
Philippines has the lowest public external debt in the East Asia and the Pacific Region and has
a lot of reserved money that can help boost our economic growth. According to the article, The
Philippine economy is still expected to rise by the year 2021-2022 because of the help of digital
transactions.

RECOMMENDATION/SOLUTION: (As a future business owner, economist, and accountants how can
you give solution for the betterment of our country/economy)

The recommendations of the group are, there is a need to improve the digital
infrastructures of the Philippines for the income creators to continue the flow of the economy. As
we all know that the Philippines has a really bad connection or internet connection as we all
experience that. For the economy to not collapse, it is recommended to improve the digital
infrastructures here in the Philippines to have a better and affordable internet service. we
believe that the Philippine government still has to focus on improving the quality of health care
services and the health care system in general, this is especially helpful during this time of
crisis. By doing so, we can prevent further losses and put a stop on economic collapse. This
way, we are protecting the Filipino people, our right to proper health care, and our right to
livelihood. Also, any support from our government to enterprises affected by the Covid-19
pandemic, may it be financial or in any other form, would be a great help and increases the
chances of these enterprises in redeeming their businesses. The government also should do
what is right and that is to be open-minded of the issues happening whether it is good or bad.
They also have to be alert and strictly let the people follow the safety protocols appropriately
everywhere in the the country. Lastly, we believe that us individuals also have a role to play in
these trying times. If possible, support and buy from small local businesses. That’s just one of
the thousand possible ways in which we can help. In this time of pandemic, we really need each
other. Helping a friend or any people who are in need has really a great impact for them.
Through small things we can achieve happiness and success. All we have to do is to fight
together and everything goes better than it was. And as what they say: Together, let us build
back better!

CLASSMATES OPINION / SOLUTION:

As for our classmates opinions, the economy of the Philippines was greatly affected by the
COVID-19 pandemic. The recommendation to improve digital infrastructure is a good start in an attempt
to "recover" our economy. MSME (Micro, Small and Medium Enterprises) are the most affected
businesses. Hundreds of billions of pesos are needed to control the pandemic and help the economy.
Help from the government is essential to survive, however this won't make a positive mark on our
economy and will not help the country's economic growth. Millions of poor Filipino families have been
facing the worst mass unemployment in the nation's history. It is practical to provide digital
infrastructure for businesses in order to cope up and keep the country’s economic growth. The
Philippines' economy suffered as a result of the outbreak of Covid-19 and the occurrence of a natural
disaster. Many businesses had to close due to enhanced community quarantines to cope up with the
strict containment measures against the pandemic. Many people lost their jobs and the people who are
facing poverty are struggling more to survive. Despite this disaster the society fought it with the an
analytical solution by thinking positively. The lack of healthcare equipment made hospitals and clinics full
and people are at risk of getting infected. One of our classmates agreed that supporting small businesses
is one of the keys to a broad-based recovery. This will help guarantee that the recent crises do not
permanently affect the country's economic potential and human resources. Supporting small businesses
is also supporting the economy of the local community because it helps in sustaining jobs and it keeps
the business thriving. I think improving the internet providers here in the country can help in the
development of digitalization. Digitalization can aid the economy in recovering the losses from the
COVID-19 outbreak. Most of them believed that the digitalization of our economy would lead to the
betterment of the economy as a whole. As most businesses have halted their operations temporarily
especially, those businesses that could attract more people through, these business owners become
more innovative and creative to think of possible ways that they could continue their business
operations, and it is through the use of the digital platform that enables them to promote their business
to a wide range of customers online.

And to summarize their solutions regarding the issue, they suggested supporting every business
in the country. To also prevent the virus from spreading, sellers should refrain from going outside their
homes. They can try using the digital world in selling their products. With the help of the government as
well, they do believe that those people who are in need of help, will rise from their bad situation and be
able to survive. Some of our classmates recommend that we should be united with one another and
spread positivity to everyone. They believe that we are all in this together and we will get through this
together as one country.