TO: Prof.

Paul Espinosa SUBJECT: Economic Development AE 12

“Philippine Economic Development”

I. Introduction

This research paper studied our over a decade economy and our recent

economy status here in the Philippines. It also shows how far our economy has been

from then and now. What are those problems in our country that affects our economy

and how well our former Presidents and current President Rodrigo Duterte coping it,

with appointed data .

In the last years, The Philippines has a dismal track record of political stifling

promising economic growth patterns, resulting in an unpredictable development

trajectory centered on a low average growth rate. ' Under Ferdinand Marcos, the

country flourished rapidly in the 1970s. However, this was debt-driven expansion,

which became unsustainable when the debts came due and political instability set in

in the early 1980s. The phrase "crony capitalism" is one of Marcos's most enduring

contributions to world debate. Then, in the 1990s, growth accelerated under Fidel

Ramos, arguably the country's most successful president, until the Asian economic

crisis hit.

In today's economy (2021) — According to a new Asian Development Bank

(ADB) analysis released today, public spending on infrastructure and social

assistance, improved success in the country's corona-virus (COVID-19) vaccine

effort, and a gradual rebound in the global economy will sustain growth in the

Philippines this year and next.

II. Body
The Philippine economy has had a tumultuous history of growth and

development since the end of World War II. The Philippines has gone from being one

of the richest countries in Asia (second only to Japan) to one of the poorest. Growth

was high shortly after the war, but it decreased over time. A severe recession in 1984-

85 caused the economy to contract by more than 10%, and worries of political

instability under the Aquino government hampered economic activity even

more.During his presidency, President Ramos implemented a slew of economic

reforms and programs aimed at spurring company growth and international

investment. As a result, the Philippines saw a period of faster growth, but the Asian

financial crisis, which began in 1997, hindered economic progress in the Philippines

once more.President Estrada was able to carry on some of the reforms initiated by the

Ramos administration. During his brief tenure, important laws were adopted to

strengthen the regulation and supervision of the banking system (General Banking

Act) and securities markets (Securities Regulation Code), to liberalize foreign

participation in the retail trade sector, and to encourage and regulate Internet

commerce. Despite occasional challenges to her leadership and vested interests'

opposition to pro-liberalization initiatives, President Gloria Macapagal-Arroyo has

made significant headway in restoring macroeconomic stability with the assistance of

a well-regarded economic team. Nonetheless, despite recent advances, fiscal issues

remain one of the economy's weakest links and greatest vulnerabilities.

Despite its occasionally bad international image, the Philippine economy has

been functioning strongly in recent years, far better than is widely acknowledged.

Until the global financial crisis in 2008, the country had its longest streak of

uninterrupted positive per capita economic growth since the 1970s, lasting five years.
It appears to have progressed past the "two lost decades" of 1983-2003, when there

was no net rise in per capita income. Businesses are beginning to protect themselves

from the seemingly perpetual plague of political machinations tainting the business

environment. That is, business and politics appear to be "decoupling."

In 2021, the Philippine current President is Rodrigo Roa Duterte. The

Philippine economy is expected to improve, with stronger growth in 2022. The

government's expansionary fiscal policy and supportive monetary policy will put the

economy on a sturdy recovery path by the second half of 2021. The government's

efforts to expand labor market initiatives and aid in the recovery of pandemic-affected

industries such as agriculture and tourism will help the economy recover even more.

“Our 4.5 percent growth forecast is towards the lower end of economists'

expectations, so there are upsides to our projection,”. Priority should be given to

tackling the pandemic's devastating consequences on private-sector jobs. Over the

long term, programs to assist individuals and businesses affected by labor market

changes, as well as policies to enhance productivity development and investment, will

help to mitigate the pandemic's negative impacts on employment.” However,

challenges remain, such as uncertainty about the pandemic's trajectory and the

appearance of new coronavirus strains throughout the world. In the short term, the

Philippines' COVID-19 vaccine deployment may be hampered by worldwide supply

constraints, and local community quarantines may be prolonged to combat the spread

of COVID-19. Due to growing global commodity prices and other supply-side

variables, inflation is expected to reach 4.1 percent in 2021, up from 2.6 percent in

2020. For example, African swine flu has caused interruptions in the Philippines' pork

supply. As the government takes steps to reduce supply-side constraints, inflation is

predicted to fall to 3.5 percent in 2022. The current account surplus is forecast to
narrow to 2.5% of gross domestic product in 2021 and 1.8% in 2022. Merchandise

exports are expected to increase with the rise in global trade, as imports, especially

capital goods, rebound to support public infrastructure development.

III. Conclusion

Finally, Philippine history economy was shown, the growth was high

shortly after the war, but it decreased over time. A severe recession in 1984-85 caused

the economy to contract by more than 10%. The Asian financial crisis, which began in

1997, hindered economic progress once more. President Gloria Macapagal-Arroyo

has made significant headway in restoring macroeconomic stability. However, fiscal

issues remain one of the economy's weakest links and greatest vulnerabilities. Until

2008, the country had its longest streak of uninterrupted positive per capita economic

growth since the 1970s. It appears to have progressed past the "two lost decades" of

1983-2003. Businesses are beginning to protect themselves from the seemingly

perpetual plague of political machinations.

The Philippine economy is expected to improve, with stronger growth in 2022.

The government's expansionary fiscal policy and supportive monetary policy will put

the economy on a sturdy recovery path. challenges remain, such as uncertainty about

the pandemic's trajectory and the appearance of new coronavirus strains. In the short

term, the Philippines' COVID-19 vaccine deployment may be hampered by

worldwide supply constraints, and local community quarantines may be prolonged to

combat the spread of COVI-19. Due to growing global commodity prices and other

supply-side variables, inflation is forecast to reach 4.1 percent in 2021, up from 2.6

percent in 2020. Merchandise exports are expected to increase with the rise in global

trade, as imports, especially capital goods, rebound to support public infrastructure

development.

Prepared by: Ruby Ann Songahid

BSA AE 12
References:
https://www.historycentral.com/nationbynation/Philippines/Economy.html#
https://www.adb.org/news/philippine-economy-2021