Applied Economics Possible Solutions To Economic Problems in The Philippines

Economic Problems in the Philippines
Inflation
Inflation is an economic term that refers to the general

There isn't a universal solution for inflation, and the most
effective approach varies based on circumstances. It typically
requires a combination of government policies and individual
efforts. Increase in the prices of goods and services over time,
which reduces a currency's purchasing power. Inflation is
usually expressed as an annual percentage, indicating the rate
at which the overall price level of a basket of goods and
services rises. When inflation occurs, each unit of currency
purchases fewer goods and services than before.
Inflation in the Philippines is influenced by several

factors. Demand-pull inflation may occur due to a rapidly
expanding economy and increased consumer spending, whereas
cost-push inflation may result from rising production costs. The
Bangko Sentral ng Pilipinas' (BSP) monetary policies, such as
interest rate and money supply adjustments, also play an
important role. External factors, such as global economic
conditions and supply chain disruptions, can influence the
inflation rate. To fully comprehend the current situation, it is
critical to consult the most recent reports from official
sources such as the Philippine Statistics Authority (PSA) and
the BSP, which regularly release inflation data and economic
analyses.
SOLUTION
There are various ways to deal with inflation, each with its
pros and cons:
Government Actions
Monetary Policy:
Central banks, like the Federal Reserve, can raise interest

rates to control inflation. This can slow down the economy but
may also lead to higher unemployment.
Fiscal Policy:
Governments can cut spending or raise taxes to reduce inflation,

but this might hurt the economy.
Trade Policy:
Lowering trade barriers can make imports cheaper, helping to

ease inflation, but it may harm local industries.
Supply-Side Efforts
Increasing Production:
Encouraging businesses to produce more goods can help meet

demand and lower prices. This could involve tax breaks or
infrastructure projects.
Fixing Supply Chain Issues:
Improving logistics and diversifying supply chains can prevent

shortages and lower prices.
Investing in Renewable Energy:
Switching to renewable energy sources can cut energy costs and

bring down prices.
Individual Steps
Smart Spending:
People can be mindful of their spending, focusing on essentials

and avoiding unnecessary purchases to reduce demand.
Investing Wisely:
Investing in assets like stocks or real estate can protect

savings from inflation.
Negotiating for Raises:
Asking for a raise can help maintain purchasing power amid

rising prices.
There isn't a universal solution for inflation, and the most

effective approach varies based on circumstances. It typically
requires a combination of government policies and individual
efforts.
Unemployment
Unemployment is a major economic problem in the

Philippines. Despite relatively fast employment growth in the
past decade, unemployment has remained high, almost twice the
level of neighboring countries. One reason for this is that job
creation has struggled to keep pace with an ever-expanding
population. Other reasons include a lack of decent employment
opportunities, lack of relevant skills and competencies,
geographic mismatch and mobility, poor education system, labor
market frictions and rigidities, technology, inflation, and
seasonal factors.
The numerous ways to fix this issue are as follows:
● Promote education for everyone
- One of the numerous reasons why unemployment is

rampant is that a portion of the population has a
skill gap. By promoting education, this means that the
population will be more inclined to get the education
necessary to be able to land an occupation, therefore
reducing the skill gap. This would also include more
accessible job training programs targeted at many
specific occupations, depending on the type of job the
worker would want to work in.
● Increase in jobs in labor-intensive industries
- As we transition to an age where menial tasks are done

by machines, many job opportunities tend to disappear
as people start incorporating machines. To help reduce
unemployment, the government has to invest in
industries that require a lot of hands-on labor, like
agriculture, food service, hospitality, healthcare,
and mining.
● Invest in infrastructure
- Most jobs tend to be inaccessible due to the poor

mobility of workers in an area. As such, investing in
the improvement and maintenance of roads and transport
services offers not only mobility to many people but
also gives opportunities for people to work in
transportation, maintenance, operation, or even
helping people get from one place to another in order
to buy and sell goods and services.
Poor Infrastructure
Why is there poor infrastructure in the philippines?
The plans and projects that Filipinos or people in power

have are great ideas, the problem is the execution. Many of
these projects often fail to live up to the expectations because
of poor planning and management, leading to more operational
costs and expenses for the project that often leads to low
results.
The economic issue associated with deficient infrastructure

in the Philippines is complex and has significant repercussions.
Poor infrastructure, spanning transportation, energy, and
communication systems, hinders economic growth and progress.
Ineffectual transportation infrastructure leads to delays,
increased logistics expenses, and decreased overall operational
efficiency for the movement of goods and people. A lack of
reliable energy infrastructure can impede industrial
productivity and discourage investments. Moreover, insufficient
communication infrastructure limits connectivity, restricting
access to information and placing businesses at a disadvantage
in the global market. The Philippines must address these
infrastructure deficiencies to improve economic competitiveness,
attract investments, and promote sustainable development.
Because of poor infrastructure, most businesses are not

able to flourish because resources are hard to obtain and
inefficient to get due to the traffic. Business is not able to
bloom in such situations and these often lead to increased costs
(more expenses)
As such, it is advised to:
● Encourage the Government to invest more in Infrastructure

- Investing more in infrastructure will increase the
likelihood of improving it. Funding these projects
related to infrastructure might help with the problem.
● Have capable individuals in charge
- Hiring capable individuals to be in charge of the

Project is an important part of Poor Infrastructure.
It is notable that the Poor Infrastructure in the
Philippines is often due to faulty and easily damaged
roads, transportations, etc. As such, it must be
encouraged that the individuals hired for the Project
have expertise on Infrastructure, and are motivated to
ensure that these infrastructures won’t break, and if
they would, this will lower their credibility in their
profession. In a way, this change will inspire these
individuals to ensure quality work.
● Change the management system
- Managing is an important part of a government, and it

is especially important towards the individuals in
charge of the Infrastructure in the Philippines.
Similar to the first solution, it is recommended for
the government to manage these projects and
infrastructures and the people behind them properly to
ensure quality roads and transportation services.
● Stop turning Agricultural Lands into Industrial Lands
- The Philippines is known to be an Agricultural

Country, however with the transformation of
Agricultural Lands Philippines has started to rely
more on Imported goods which lessens the Job
Opportunities for people and results in more Filipinos
looking for jobs within the city or overseas.
● Provide more Job Opportunities
- Provide more jobs all throughout the country instead

of just the big cities, as most Filipinos enter cities
for opportunities which often leads to traffic and
slows down the economy. These Job Opportunities can be
related to my 3rd solution. Businesses are encouraged
to spread out on different lands and industries are
encouraged to create more jobs for more Filipinos to
employ in, in order to lessen the population in one
city which is the very reason why there is more
traffic and a lot of damages to infrastructures.
- The lack of Jobs encouraged Filipinos to travel to

cities like Manila, known for being the busiest city
of all cities in the Philippines. Creating job
opportunities outside of cities will encourage
Filipinos to find Jobs elsewhere and will lessen the
delays and negative effects on the infrastructures
available.
Members:
Charles Campos
Franzcine Espanto
Jason S. Salazar
Princess Sophie Samonte
Ryll Rich C. Basiana

Applied Economics Possible Solutions To Economic Problems in The Philippines

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Economic Problems in the Philippines

Inflation is an economic term that refers to the general

Inflation in the Philippines is influenced by several

Central banks, like the Federal Reserve, can raise interest

Governments can cut spending or raise taxes to reduce inflation,

Lowering trade barriers can make imports cheaper, helping to

Encouraging businesses to produce more goods can help meet

Fixing Supply Chain Issues:

Improving logistics and diversifying supply chains can prevent

Switching to renewable energy sources can cut energy costs and

People can be mindful of their spending, focusing on essentials

Investing in assets like stocks or real estate can protect

Negotiating for Raises:

Asking for a raise can help maintain purchasing power amid

There isn't a universal solution for inflation, and the most

Unemployment is a major economic problem in the

The numerous ways to fix this issue are as follows:

● Promote education for everyone

- One of the numerous reasons why unemployment is

● Increase in jobs in labor-intensive industries

- As we transition to an age where menial tasks are done

- Most jobs tend to be inaccessible due to the poor

Why is there poor infrastructure in the philippines?

The plans and projects that Filipinos or people in power

The economic issue associated with deficient infrastructure

Because of poor infrastructure, most businesses are not

As such, it is advised to:

● Encourage the Government to invest more in Infrastructure

● Have capable individuals in charge

- Hiring capable individuals to be in charge of the

● Change the management system

- Managing is an important part of a government, and it

● Stop turning Agricultural Lands into Industrial Lands

- The Philippines is known to be an Agricultural

● Provide more Job Opportunities

- Provide more jobs all throughout the country instead

- The lack of Jobs encouraged Filipinos to travel to

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