The Philippine peso appreciated in early 2020. The Philippine peso solidly appreciated in insignificant terms against the U.S. Dollar during most of the year 2019 due to slower importation growth and capital inflows. COVID-19 impacts the ASEAN countries especially the Philippine with an economy by P2.2 trillion in losses. – Metro Manila, which accounts for 37.5% of GDP, is a major concern, while the entire Luzon region accounts for about 73% of the country’s GDP. Industries of Real estate, retail to manufacturing are experiencing serious challenge due to Lockdown. The economic team had projected contraction of 2 to 3.4% as companies shed profits while 10 million of workers lose their job and income said the Department of Labor and Employment (DOLE). There’s also a huge loss on remittances given that thousands of OFWs – Overseas Filipino Workers that have been temporarily or permanently retrenched and are returning to the Philippines.
The disruption in household income due to the COVID-19 pandemic could lead to an increase in scarceness if no social protection actions are in place. The government has approved an broad financial package to protect households and firms from the impact of the COVID-19 pandemic,

SOCIAL AMERLIORATION PROGRAM (SAP) – ECONOMIC RELAUNCH

Pillar 1: Emergency support for vulnerable groups and individuals amounting to PHP595.6 billion, which is PHP5.6 billion (higher than what was reported previously due to the inclusion of additional DOLE and Department of Agriculture (DA) programs, and an Asian Development Bank (ADB) grant for rapid emergency supplies.
Pillar 2: Expanded medical resources to fight COVID-19 with an increased budget amounting to PHP58.6 billion which is PHP80.6 billion higher than the one previously reported due to the updated value of World Bank financing for COVID-19 response programs.
Pillar 3: Fiscal and monetary actions to finance emergency initiatives and keep the economy afloat (P610 billion, which includes standby financing for Pillar IV or the economic recovery plan, and P233 billion liquidity infusion into the economy)
Pillar 4: An economic recovery plan to create jobs and sustain growth, which will be funded by pillar 3.
The Social Amelioration Program (SAP) is under the first pillar of providing emergency support or lifeline assistance to vulnerable groups. It is thus far the most comprehensive and largest social protection program in the history of the Philippines amounting to around PHP205 billion (US$4.1 billion) to support 18 million low-income households for the first tranche of the SAP distribution and to reach around 23 million low-income families in total, as it started the second wave of distribution of cash subsidies as directed by President Duterte.

ECONOMIC OUTLOOK:

Finance Department is readying for the republic’s response to global recession that paralyzed the Philippine Economy. The government is acting with unprecedented stimulus measures, both fiscal and monetary, to support the economy and firms and people. To date, a total of P64.3 million has been distributed to waitlisted families in geographically isolated disadvantaged areas and throughout the implementation of SAP 2, it has been helpful that will benefit the poorest Filipinos in the country.