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TERMINAL REPORT.

Gross Domestic Product

The Philippine’s GDP plummeted the moment the pandemic hit the third world country. The pandemic did not give mercy to the domestic demand, tourism, trade and manufacturing all together. Last year was a sudden burden to the government official as they quickly put the whole country on a lockdown leaving all the demands for GDP on hold. And with the continuous quarantine as well as incompetent government the GDP is bound to get lower as months will pass by unless some magic will make it turn around but of course that would be impossible. How did the recession of the GDP come to be? Firstly, The pandemic came without warning and as much as the people say, the Philippines was not prepared. With that in mind, we can easily assume that the government did not plan through how to save the market demand, tourism, manufacturing and trade. The importance of being able to keep the COVID cases to a minimum was the main priority even to the Philippines and as much as we want to deny it GDP was in the “Important but not as important in making the country safe.” According to the National Economic and Development Authority the Philippines lost P1.1 trillion or 5.6 percent of GDP in the first 45 days of ECQ. It took at least 3 months or so to let other workers do their jobs as it is one way to retrieve the lost GDP we had. Few months later, the government took the rescission of the GDP and planned to reverse the damage. They tried to reopen some businesses in hopes to lessen the burden. Trade has been slow as all countries are still facing the horrendous virus but tourism slowly opened up with great caution as tourism means a lot of people. The government tried their best to at least overthrow the problem with the GDP. Now, according to Asian Development Bank, the Philippines will probably make a rebound on 2021’s GDP as the economy of the Philippines is significantly slow. However, ADB projected that the country will get at least 6.5% of their lost GDP assuming that COVID-19 infections in the country are curbed by June this year. Until today, the Philippines are taking precautionary measures as well as slowly taking steps to reclaim the lost GDP due to the unexpected pandemic. There are currently a lot of projects that focus on the overall reclaiming of GDP and hopefully this will be a jumpstart to help the country. And with this in mind, I do hope the government will act fast and does not dilly dally as time cannot save the country, the sluggish economic recovery will always be blamed by the government as we paid them for making the country safe, protected and well. It is afterall what they signed up for when they decided to be a part of the political standpoint. And with the president's estimated GDP growth for 2021 would settle between 6.5% and 7.5%, and hit the 8% to 10% range in 2022 then they better act quickly.

General Price Level

With the overall Pandemic issue around the world and especially in the Philippines, it is not an excuse that the country would also experience an issue with regards to the overall general prices. Now, we would assume that the prices would also rise as the pandemic continues but the government tried to lessen this problem as the country folks could not afford another sudden rise of the price. What the government did was to lessen the consumption of each household, in that manner a price won’t go above what was originally planned as well as to lessen the panic within the people. The good during the first month or so of the Pandemic, food sources were scarce and everyone started to panic. Let’s use canned goods as an example, before pandemic arises one canned good was sold around 20 pesos or so. When news of the ongoing virus was spreading, prices of some goods were rising but not to the point where people go barbaric and considering that canned goods are essential to a daily life, it rose to around 30 pesos per canned good. When the official finally understood the dangers of the virus, everything went on panic. Stores were closed, no one could buy anything and everything was not in order. The overall price of the consumed goods in the Philippines skyrocketed and that’s mainly because the government did not expect the virus to be deadly. It almost took the country about 3 or so months to keep the problems at bay. Currently the consumer index is slowly regaining its lost percentage. But nothing is for sure as the Pandemic is quite unpredictable and considering the incompetence of the government official we might be dealing with a backlash when it comes to the general prices. Currently the goods we got outside the Philippine area are limited, flights for international are on hold because of the large covid cases just within the Philippines. The overall consumption of the Philippines as well as the Investment, the net exports and government spending are on thin ice in a way that because of the virus the usual move of the consumption, investment, net exports and government spending have been disrupt and no one can really tell when all of these will go back to normal or will it ever go back to normal. But as far as the people of the Philippines, if things do not turn for the better we will surely be experiencing a terrible war just within ourselves. Though currently minimizing the overall cases of the virus is top priority while battling the financial crisis that upholds the country at the same time as they are related to one another. A fall in the financial upholdings is also a fall in winning over the virus. One cannot lose as they are the only thing that still holds together the battles of the country.

Money Supply 

Money supply of the Philippines continues to circulate every single day. According to Banko Sentral ng Pilipinas there about 4.1 billion pieces of notes valued at PHP 1.7 trillion and 34.9 billion pieces of coins valued at PHP46. 3 billion in circulation as of 31 July 2020 and this excludes commemorative notes and coins. Based on the Data that was gathered, the lowest/ minimum Money Supply/ M1 is around 2,553.536 ( Jan 1989) while the maximum is around 113,592.621 ( Dec 2020). As money supply is constantly updated every month, in March just when the Quarantine started there was an estimation of 94.141.745 and it rose as the quarantine stayed. Money supply circulated fast because of the Pandemic. Pandemic really disrupts the financial system of the Philippines and one of them is the money supply of the said country. Because of Quarantine a lot of the household began to sell out their assets as well as circulate a lot of money fast as some of the household feared that it would fail them in the succeeding days. Under consumption, each household decided to buy future necessity in fears that it would be gone in a flash (cash circulated). Under Investments, A lot of stocks were pulled out for future consumption and because they feel like these stocks would be useless in the future upbringing (assets circulating) and because of people pulling out, the stocks plummeted so bad that a lot of stocks were so cheap. Under government spending, government officials stood some hospitals, facilities as well as buying vaccines and for research purposes and such a lot of money was spent (cash circulating). Under Net exports, a lot of international goods/flights were cancelled in fear of adding more cases around the world but considering that online shopping became a trend a lot of materials came outside the Philippines (cash circulating). In conclusion, Assets circulated big enough because of the unexpected hit of the pandemic and just like that at the end of the year 2020 it garnered around 113,592.621mn making it one of the maximum money supply in the Philippines. Currently as of this month, the money supply has lowered not by much but a considerable amount. The circulation of money has been skyrocketing by a large amount. This has affected the business cycle and has greatly affected the economy by lots. And this estimation is still based on the M1and this alone has a great impact on the ever changing economy of the Philippines. And we will never be certain when will the effect of the abnormal rising and falling of all the charts of the financial sector of the Philippines will return to normal but as far as the quarantine is still ongoing, as far as the COVID cases still ongoing and as far as the government still stalling the real problem of the country it would take a long time to recover back from the original state.