The COVID-19 pandemic has had an unprecedented adverse economic impact as both the domestic and global economies have ground to a virtual standstill. Recognizing the adverse economic effects of the pandemic, authorities have implemented policies to soften its impact. On its part, the Bangko Sentral ng Pilipinas (BSP) has immediately deployed measures to ease the macroeconomic fallout and to ensure that no disruptive imbalances emerge in financial markets. Taking off from the government’s 4-pillar strategy and the IATF-TWG-AFP COVID-19 framework, this policy paper identifies four phases for the Philippines’ macroeconomic policy response to the pandemic. It highlights the policy inroads that have been collectively achieved and puts forward policy options in navigating the recession and in adapting to the new economy. It also identifies the principles for the unwinding of policy support measures. The COVID-19 crisis has exposed vulnerabilities and gaps in existing processes and systems that need to be swiftly dealt with in order to regain momentum. It also offers rich lessons on crisis preparedness and adaptability towards a more sustainable and equitable growth path.
