ISSUES FACING

THE PHILIPPINE
ECONOMY
Second Part
Presented by: Eunice Micahela D. Salazar
MBA-503 ECONOMICS
Table of Contents

01 POVERTY 02 GROWTH RATE

IMPORT DRIVEN
03 ECONOMY 04 RISING PRICES
Table of Contents

REVENUE
05 COLLECTION TAXES 06 MANUFACTURING

BULGING
07 LACK OF EXPORT 08 BUREAUCRACY
Table of Contents

STOCK MARKET
09 CRASHES 10 OVERPOPULATION

11 COVID-19 PANDEMIC
 POVERTY
In which a Filipino whose per capita
income is not sufficient to meet their
basic food and non-food needs.

Proportion of poor Filipinos was

estimated at 16.6 %. This translates to
17.6 million
2018- As per Philippine Statistics Authority
Poverty & Subsistence Incidence Among Population: 2015
and 2018
25

20

15

10

0
2015 2018

POVERTY INCIDENCE SUBSISTENCE INCIDENCE

 Key Contributors to Poverty

Underdeveloped
Unemployment Vulnerability High Population
Agricultural
The country'sSector
agriculture
As per PSA’s Around 20 As per PSA’s statistics sector is made up of 4 sub-
statistics 17.7% typhoons hit the the Total Population is sectors: farming, fisheries,
are unemployed as Philippines each 100,981,4371/ for the livestock, and forestry
of April of 2020 year. year 2015 (released last
March 2021)
 Combatting Poverty in the
Philippines

Education Healthcare Family Aid

A factor of systemic poverty is a
lack of access to education in
impoverished areas.
Access to the full spectrum of
healthcare,  those in poverty will
have more access to health
services.
The 4Ps is is a conditional
cash transfer program for
impoverished households.

Build, Build, Build

Economic Improvement
Hopes to combat the effect of the pandemic
Rice Tariffication Law to
by improving the country’s infrastructure will
strengthen the prioritization of local
stimulate the economy and create more jobs.
rice production and demand
“Poverty is the parent of revolution and
crime.”

- Aristotle
 Economic Growth Rate
GDP
Gross Domestic Product
 is the monetary value of all finished
goods and services made within a
country during a specific period.
GNP
Gross National Product
is an estimate of total value of all the final
products and services turned out in a given
period by the means of production owned by a
country's residents. 
 The Philippine Gross Domestic Product
Factors and Formula of (GDP) posted a growth rate of -8.3 percent
in the fourth quarter of 2020, resulting in
GDP the -9.5 percent full-year growth rate for
2020.

GDP =  C + I + G + NX.

C- Consumption

I- Investment

G- Government

N- Net Exports (Imports-Exports)

 Economic Growth of
the Philippines

Gross Domestic Product

10

6.3 6.7
55.7 5.4

0
Q1 2018- Q2 2018- Q3 2018- Q4 2018- Q1-0.7
2019- Q2 2019- Q3 2019- Q4 2019-
2019 2019 2019 2019 2020 2020 2020 2020
-5
-8.3
-10
-11.4

-15
-16.9
-20
1
Import-driven Economy

Purchases in total
Imports are foreign goods and services bought
Trade Deficit
by citizens, businesses, and the government of the amount by which the cost of a
another country. country's imports exceeds the value
of its exports.

2 3
Effects if an Economy is
Import-Driven

+ If a country imports more than it exports it runs a trade deficit. If it imports

less than it exports, that creates a trade surplus.
 Import and Export in
the Philippines
50

40

30

20

10

0
2018 JUN JUL AUG SEP OCT NOV DEC 2019 FEB MAR APR MAY
MAY JAN
-10

-20

IMPORTS EXPORTS
 Rising Prices
●  a general and progressive
increase in prices

Inflation
● Inflation is the decline of
purchasing power of a given
currency over time.
● The rate at which the the value of
a currency is falling and
consequently the general level of
prices for goods and services is
rising.
 Two Causes of Inflation and the
Circumstances That Create Them

Demand-Pull Inflation Cost-Push Inflation

the most common cause of It only occurs when there is a
rising prices. It occurs supply shortage combined
when consumer demand with enough demand to
for goods and services allow the producer to raise
increases so much that it prices.
outstrips supply.
 Inflation in the PH

2.5 2.6 4.2

2019 2020 2021

Revenue Collection Taxes

1. Highest income tax rates in the region

Revenue Collection Taxes

2. Too many people are evading the tax system.

Revenue Collection Taxes

3. Our tax system is too complicated.

Revenue Collection Taxes

4. Rich Filipinos are not paying their fair share of taxes.

Not only do our taxes disproportionately burden the poor and benefit the
rich, but they also yield too little revenue given the distortions they
create. Needless to say, both problems need to be resolved soon.
 Issues in Manufacturing in the PH

Forecasting consumer Maintaining Inventory

demands Greater competition Levels

There is a rising demand for e- Local and global competitors are Inadequate storage space
commerce. Everything can now be entering the market flexibility in consumer demands,
ordered online with a click of a improperly stored products, and
finger. shortages.

Keeping Up With The Trend Of

Skilled Labor Shortage Automation

With the older generations leaving Manufacturers are under great pressure to
the workforce, manufacturing fulfill market expectations.
companies face an impending labor
shortage.
Distribution of All Establishment
by Sector

G – Whole Sale &

Retail, Repair of
Motor Vehicle
and Motorcycle

I – Accommodation
and Food Service

C - Manufacturing
Distribution of All Establishment
by Sector
 Lack of Exports

Purchases in total
Imporatance of Exports
Exports are goods and services that are
produced in one country and sold to buyers in
another.  1 Creation of Employment

2 Economic Growth

3 Current Account Deficit

Summary of External Trade
Performance

FOB Value - Free on Board

Philippine Import and Export
Statistics
x Bureaucracy

+ a system of government in which most of the important decisions are made

by state officials rather than by elected representatives

Issue: Bulging Bureaucracy

Advantages & Disadvantages of Bureaucracy

Advantages Disadvantages

Specialization Rigidity
Structure Goal Displacement Impersonality
Rationality Compartmentalization of Activities
Predictability Paperwork
Democracy Empire Building
Red Tape
 Stock Market
Crashes
A stock market crash is a sudden dramatic decline
of stock prices across a major cross-section of a
stock market, resulting in a significant loss of
paper wealth. Crashes are driven by panic
selling and underlying economic factors.
FACTORS AFFECTING
STOCK MARKET

Supply and demand Politics

Company related factors Current events

Investor sentiment Natural calamities

Interest rates Exchange rates

Philippines Stock Market Index
xOverpopulation

+ 100,981,437 1/
Total Philippine Population (National Quick stat January 2021)
 Various Causes of
Overpopulation

The Decline in the Death Rate Child Labor

Agricultural Advancements Technological Advancement in Fertility

Treatment
Better Medical Facilities Immigration

More Hands to Overcome Poverty Lack of Family Planning

Poor Contraceptives Use

 Fatal Effects of
Overpopulation

Depletion of Natural Resources Malnutrition, Starvation and Famine

Water Shortage
Degradation of Environment
Extinction
Rise in Unemployment
Increased Intensive Farming
High Cost of Living

Pandemics and Epidemics 

Philippines: Total population from
2015 to 2025
 COVID-19
PANDEMIC
xConfirmed Cases

+ 574,247
From World Health Organization
x Recoveries

+ 524,865
From World Health Organization
x Deaths

+ 12,289
From World Health Organization
 Industries Affected by the
Covid-19 Pandemic

Tourism, Travel and Hospitality industry Manufacturing Industry

Food and Beverage Industry
Automotive Industry
Entertainment (Casinos, Theaters,
Amusement Parks) Schools and Universities
Transportation
Health Industry
Real State Developers
 National Responses and
Regulations
Lockdowns
Enhanced Community Quarantine,
Moderate Enhance Community
Quarantine etc.
Frontline workers
compensation
Administrative Order No. 26 granting that
front line government officials and
employees receive a daily hazard pay of
₱500
Cash Aid
Social amelioration program.
providing aid to 17.1 million
beneficiary households with ₱96.7
billion worth of cash subsidy
distributed
Travel restrictions
The Philippines suspended all
inbound commercial flight
to its international airports
Universal healthcare
PhilHealth announced that it
would provide ₱30-billion worth
of advance payment to its
accredited health facilities.
Quarantine and
isolation
The DPWH and the Bases Conversion and
Development Authority has set up
quarantine/isolation centers by
repurposing facilities
Revenue Colletion Taxes

Not only do our taxes disproportionately burden the poor and benefit the
rich, but they also yield too little revenue given the distortions they
create. Needless to say, both problems need to be resolved soon.
“This pandemic has magnified every existing inequality
in our society – like systemic racism, gender inequality,
and poverty,
-Melinda Gates
THANK
YOU!
Eunice Micahela Salazar