Rethinking "Economic Fundamentals" in an Era of Global Physical Shocks: Insights from the Philippines Experience with COVID-19

Abstract

At the time of the onset of the COVID-19 pandemic, the economy of the Philippines had strong macroeconomic fundamentals—a decade of robust growth at an average annual rate of 6 percent, low inflation, remarkably low external debt exposure, strong fiscal position, and the highest ever sovereign debt rating—which are commonly identified as prerequisites for facing external economic shocks with comfort. Show more