Situational Analysis and Strategy
The Philippines is among the most impacted countries by COVID-19 in ASEAN. The number of cases continue to rise dramatically with some estimating that as many as 150,000 people will be infected in Metro Manila alone. To contain the spread of the virus, the Government put in place an enhanced community quarantine, together with other containment measures. The government has also announced a fiscal package of enhanced social protection measures for vulnerable workers and affected sectors, including a cash aid programme for 18 million low-income households. The country is estimated to lose between 3% and 4% of the GDP in 2020. COVID-19 is already significantly impacting on consumption – a main driver of the economy – and has had visible effects on tourism, trade, and remittances, given that COVID-19 has hit hard the country’s main trading partners, source of tourists, and destinations for migrant workers. The country’s fiscal position will worsen with the loss of revenue and increased spending and borrowing required to manage the crisis. The socio-economic impact, while expected to affect most aspects of the economy will potentially deepen inequities for the most at-risk groups women-headed households, poor, informal workers, IDPs, ethnic minorities, and those in the post-conflict regions of Bangsamoro and the regions recently affected by the overlapping natural disasters. These will carry a disproportionate burden. The UN system in the Philippines is working to help mitigate the impact of the pandemic on the vulnerable population and communities. UNDP has been asked to lead the collective UN efforts to address the socio-economic impacts by supporting the government to better target and increase the efficiency of its amelioration program.
Areas of interventions