In a survey conducted in the Philippines in February 2020, about 65 percent of respondents expected the national economy to be significantly affected by the COVID-19 pandemic. Nationwide lockdowns imposed by the government have adversely impacted people’s livelihood.

COVID-19 pandemic aftermath in the Philippines

Between March and April 2020, the country’s Luzon Island went into a complete lockdown that restricted population movement with only a few exceptions. This resulted in a drastic decline in employment levels, with projections suggesting a maximum of one million people losing their jobs due to the lockdown. In addition, the imposed community quarantine would, at the very least, cause cumulative losses in gross value added of three billion Philippine pesos in every select key sector in the country.

Major economic sectors facing setbacks

With travel being a major contributing factor to the spread of the virus, the tourism industry worldwide has been brought to a grinding halt. The Philippines relies on tourism to a large extent for revenue generation and calculated a loss of GDP share  from tourism of about 0.68 percent in the worst case. Another sector to be severely hit was international trade, causing a spillover effect from Chinese supply disruptions to the Philippines. Hence, it was estimated that the communication equipment industry would lose 115 million U.S. dollars due to supply disruption.

The spill over effect of a disruption in Chinese supply to the Philippines would bring economic effects among different industries in the country. The communication equipment industry in the Philippines is estimated to lose 115 million U.S. dollars from a two percent reduction in China exports of intermediate inputs according to a report in February 2020.

According to a survey conducted on consumer sentiment on the change in usage of food delivery in the Philippines in 2020, the respondents stated that they used food deliveries during the COVID-19 pandemic compared to periods before or after the lockdown. In another survey, the majority of Filipinos perceived that the COVID-19 pandemic would impact the economy, locally and internationally.

A survey conducted in February 2020 in the Philippines on the government’s response to the coronavirus (COVID-19) outbreak found that most of the Filipinos surveyed believed that the government had acted appropriately to handle the outbreak. In the course of the virus spreading all over the country, the government has educated the population about the importance of sanitation and set up emergency funds for low-income households.  Filipinos’ response to the coronavirus (COVID-19) pandemic
As the pandemic was set to affect many Filipinos, a large share of the population heeded the government’s suggested precautionary measures. In a recent survey, most people in the Philippines frequently wore a face mask when going out of the house, washed their hands frequently, and kept physical distancing. In addition to these mandatory measures, a majority of Filipinos used face shields when using public transportation and going to public establishments. 

 Government aid for low-income households   While there have been plans for the country's economic expansion, the pandemic has halted the Philippines' economic growth, and people's jobs have been affected. In response to the anticipated effects, the government had provided an emergency aid package for low-income families in different regions of the Philippines. For every low-income household in the National Capital Region (NCR), eight thousand Philippine pesos were given.

The Retail Industry Report in the Philippines is Segmented by Products (Food and Beverage, Personal and Household Care, Apparel, Footwear and Accessories, Furniture, Toys and Hobbies, Electronic and Household Appliances, and Other Products) and Distribution Channels (Supermarkets/Hypermarkets, Convenience Stores, Department Stores, Specialty Stores, Online, and Other Distribution Channels). The Report Offers the Market Size and Forecasts for the Philippine Retail Sector in Value Terms (USD) for all the Above Segments.

Residential Real Estate Price Index (RREPI): Philippines data was reported at 163.900 1Q2014=100 in Sep 2024. This records a decrease from the previous number of 166.500 1Q2014=100 for Jun 2024. Residential Real Estate Price Index (RREPI): Philippines data is updated quarterly, averaging 122.600 1Q2014=100 from Mar 2014 (Median) to Sep 2024, with 43 observations. The data reached an all-time high of 167.700 1Q2014=100 in Sep 2023 and a record low of 99.800 1Q2014=100 in Jun 2014. Residential Real Estate Price Index (RREPI): Philippines data remains active status in CEIC and is reported by Bangko Sentral ng Pilipinas. The data is categorized under Global Database’s Philippines – Table PH.EB001: Residential Real Estate Price Indices: 1Q2014=100. [COVID-19-IMPACT]

The e-commerce sector in the Philippines had been boosting the growth of the digital economy in recent years. With a gross merchandise value of roughly 15 billion U.S. dollars in 2022, continued online shopping preference will drive growth to as much as 60 billion U.S. dollars in 2030. Meanwhile, online travel reflected sluggish growth between 2019 and 2021 due to the impact of the COVID-19 pandemic.

According to a survey conducted on the consumer sentiment about using ride-hailing during the COVID-19 pandemic in the Philippines in 2020, 46 percent of the respondents used ride-hailing less than before the COVID-19 pandemic. In another survey, the majority of Filipinos perceived that the COVID-19 pandemic would impact the economy, locally and internationally.

In 2023, the labor force participation rate in the Philippines was 64.9 percent. The labor force participation rate in the country has been fluctuating over the past decade, with its lowest figure recorded in 2020. Labor force situation in the Philippines  The labor force participation rate refers to the share of the population currently employed or actively looking for work. As a country with a predominantly young population, the labor market in the Philippines is robust, with a workforce that could drive economic growth. In 2023, the working-age population in the Philippines was estimated to have surpassed 77 million people, reflecting constant growth in recent years. Across gender, the labor force participation of women was significantly lower than for men, which stood at 71 percent. COVID-impact on employment  The COVID-19 pandemic in 2020 resulted in significant job losses in the Philippines as long periods of lockdown shuttered the economy. A survey in April 2021 reflected that around 45 percent of public transportation drivers lost their jobs due to the pandemic. In addition, 34 percent of workers in formal and informal services also experienced job losses. As a result, the unemployment rate reflected a slight increase during this period, although it was still lower than the rate of unemployment recorded in 2006.

The tourism industry contributed 8.6 percent to the gross domestic product (GDP) in the Philippines in 2023. This indicated an increase from just over five percent during the COVID-19 pandemic years. However, it was still lower than the pre-pandemic GDP share.

The gross value added generated from the food and beverage service activities' industry in the Philippines amounted to around 309 billion Philippine pesos in 2024. The GVA of this industry was lowest in 2020 at the onset of the COVID-19 pandemic.

There were roughly 32 million scheduled domestic passengers boarded by airlines in the Philippines in 2024, indicating a recovery in passenger traffic since the coronavirus (COVID-19) pandemic. Scheduled passenger traffic refers to passengers who booked a flight with a commercial airline, excluding passengers on charter flights.

Internet sales have played an increasingly significant role in retailing. In 2024, e-commerce accounted for over 17 percent of retail sales worldwide. Forecasts indicate that by 2029, the online segment will make up close to over 21 percent of total global retail sales. Retail e-commerce Online shopping has grown steadily in popularity in recent years. In 2024, global e-commerce sales amounted to over seven trillion U.S. dollars, a figure expected to exceed 10.4 trillion U.S. dollars by 2028. Digital development in Latin America boomed during the COVID-19 pandemic, generating unprecedented e-commerce growth in various economies across the region. So much so that Brazil and Argentina appear to lead the world's fastest-growing online retail markets. This trend correlates strongly with the constantly improving online access, especially in "mobile-first" online communities, which have long struggled with traditioe-comernal fixed broadband connections due to financial or infrastructure constraints but enjoy the advantages of cheap mobile broadband connections. M-commerce on the rise The average order value of online shopping via smartphones and tablets still lags traditional e-commerce via desktop computers. However, e-retailers around the world have caught up in mobile e-commerce sales. Online shopping via smartphones is particularly prominent in Asia. By the end of 2021, Malaysia was the top digital market based on the percentage of the population that had purchased something by phone, with nearly 45 percent having made a weekly mobile purchase. South Korea, Taiwan, and the Philippines completed the top of the ranking.