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.