The Economic Development Cluster provides programs that promote
welfare among our people and accelerate economic growth and stability.
Revenues were at 16.1% of GDP in 2019, the best performance since 1998
The country was able to catch up and accelerate our spending on infrastructure investments to 5.4% of GDP in 2019.
The country continues to enjoy low and stable inflation. From 2016 to 2019, our inflation rate averaged at 3%
June 2020 inflation rate further slowed to 2.5%. Prices in June have only gone up by 0.2% compared to the prices in January.
At the end of 2019, we have achieved the lowest recorded rates of unemployment at 4.5% and underemployment at 13.0%
The President's promise of lifting 6 million Filipinos from poverty by 2022 was achieved ahead of schedule in 2018. Reducing poverty incidence by 16.7% (the target is 14% or lower by 2022)
Last year, the country's risk rating was raised to BBB plus - highest in the country's history. This rating was affirmed by S&P Global Ratings and Fitch Ratings in May 2020.
On June 11, Japan Credit Rating Agency (JCRA) upgraded the Philippines' credit rating by a notch from "BBB+" to "A-", citing the country's resilience amid a pandemic. JCRA assigned a "stable" outlook on the new rating.
The Philippines meets the World Health Organization's positivity rate benchmark of 10% at 7.4%. Around 1.3 to 3.5 million estimated number of infections prevented due to government interventions, such as the lockdowns, according to the Epidemiological Models of the FASSSTER Project in April and the University of the Philippines COVID-19 Pandemic Response Team as of June 27.
Overall manufacturing capacity utilization increased to 73.4% in May compared to 71.2% in April 2020.
The latest results of the Purchasing Managers' Index also points to an improved manufacturing performance moving forward as the index rose from 40.1 in May to 49.7 in June.
Build Build Build Program has resumed subject to compliance with health and safety protocols
The Department of Science and Technology is offering Small Enterprise Technology Upgrading Program, where businesses can access training programs to help them transition to online and contactless operation.
The Department of Information and Communications Technology is providing online resources for businesses and workers under a work-from-home program.
The Department of Energy's total electrification program will be supported by the PHP 2.46 billion Access to Sustainable Energy Program grant from the European Union to ensure that enterprises in remote communities are able to adapt to the new normal.
A. Ongoing Financing for COVID-19 Response Projects from Development Partners as of July 1, 2020:
World Bank - COVID-19 Emergency Response Project Loan
USD 100 Million
Government of Japan - Non-Project Grant Aid for the Provision of Medical Equipment to DOH
USD 18.36 Million
Asian Development Bank - Grants for COVID-19 Emergency Response Project and Rapid Emergency Supplies Provision
USD 8.0 Million
B. Budgetary Financing Support Raised from Development Partners as of July 1, 2020:
Asian Development Bank
USD 2.6 Billion
USD 1.2 Billion
Asian Infrastructure Investment Bank
USD 750.00 Million
Japan International Cooperation Agency
USD 458.95 Million
Agence Francaise de Developpement
USD 275.70 Million
C. Released Allotments for the Government's COVID 19 Response Programs as of June 30, 2020
DSWD Social Amelioration Program
PHP 200.98 Billion
SSS Small Business Wage Subsidy Program
PHP 51 Billion
DOH COVID-19 Programs and Procurement of Testing Kits
PHP 48.23 Billion
Bayanihan Grant to Provinces, Cities and Municipalities
PHP 37.02 Billion
DA Ahon Lahat, Pagkaing Sapat Kontra COVID-19 Program
PHP 11.10 Billion
DOLE Workers Assistance Programs
PHP 7.44 Billion
DOLE OWWA Emergency Repatriation Program
PHP 5.15 Billion
Other National Government Agencies
PHP 13.99 Billion
Social Security System's Calamity Assistance Program - maximum of PHP 20,000 pesos loan [depending on monthly salary credit], which carries 6 percent interest with 27 month term inclusive of 3 months moratorium. As of July 5, 2020, PHP 1.7 billion in loans were released by the SSS to 102,567 borrowers.
Social Security System's Unemployment Benefits - The benefit applies to all private sector workers, including household helpers and overseas Filipino workers who were laid off, terminated, or involuntarily separated from their work. As of July 5, 2020, a total of PHP 76.2 million worth of benefits has been released to 5,740 applicants.
Government Service Insurance System's Computer Loan Program - GSIS introduced a PHP 30,000 computer loan program to its active members to aid members in light of the new normal of holding distance or online classes. The Loan is payable in three years at six percent interest rate.
Government Service Insurance System's Educational Loan Program - GSIS will launch an educational loan program for its members to pay for tuition and other school fees of their nominated student-beneficiaries. The maximum loan amount that can be taken out by a borrower for a given academic school year is PHP 100,000.00, payable after five years from initial loan take out.
Land Bank's Access to Academic Development to Empower the Masses towards Endless Opportunities (ACADEME) lending program - aims to help students in select academic institutions to continue their education amid financial difficulties due to the pandemic. Loans under the program carry an interest rate of three percent per annum and are payable based on the maturity of the sub-promissory notes but not to exceed three years. As of July 1, 2020, the bank has approved loan applications totaling PHP 260 million.
Philippine Guarantee Corporation's P120 billion credit guarantee program for small businesses - A credit guarantee program amounting to PHP 120 billion-worth of loans for private banks has been made available for them to be able to extend financial assistance to small business owners during this crisis. To date, the corporation has already accredited 22 banks for a total facility of PHP 37.5 billion.
Department of Labor and Employment's Assistance to Displaced Workers and OFWS - DOLE has so far extended financial assistance totalling PHP 6.48 billion to over 1.18 million displaced workers in both formal and informal sectors of the economy, including our returning overseas Filipino workers.
Technical Education and Skills Development Authority's Online Livelihood Training Programs - 71 online training programs have been made available to all, especially displaced workers for upskilling them and eventually absorb into the economy. 722,022 individuals availed of this program from March 16 to July 5, 2020.
Department of Tourism's Online Learning Series Workshops - 23 webinars have been conducted by the DOT under its Online Learning Series Workshops as part of its retooling program for industry stakeholders. Since April 2020, 7,192 individuals participated in the workshops.
Department of Agriculture's Cash Subsidies to Farmers and Fisherfolk - 1,014,239 farmers and fisherfolk received cash subsidies worth PHP 5,000 each under the DA's Financial Subsidy to Rice Farmers (FSRF) and Rice Farmers Financial Assistance (RFFA) programs. Farmers and micro and small agricultural enterprises can tap the Survival and Recovery Aid program of the Agricultural Credit Policy Council for additional financial assistance.
Department of Trade and Industry and the Small Business Corporation's PHP 1.0 billion COVID-19 Assistance to Restart Enterprises Loans program - 1,994 loan applications amounting to PHP 152.4 million have been approved by the DTI and the SBC as of July 6. Loans totalling PHP 14.2 million have been released to 183 borrowers as of July 6.
Continuing commitment to bold fiscal and economic reform measures, such as the remaining packages of the comprehensive tax reform program
Maintain the Build, Build, Build program to generate new jobs and businesses;
More projects in the areas of health, education, housing, and water and sanitation.
Support complementary bills to open the country to more foreign direct investments, such as amendments to the Foreign Investment Act, the Retail Trade Liberalization Act, and the Public Service Act.