The global financial and economic crises have hit the world hard. The three largest economies are already in recession and smaller ones like the Philippines are doing everything they can to stay afloat.

The economic resiliency plan (ERP) is the country’s response to the global crisis. It aims to stimulate the economy through a mix of government spending, tax cuts and public-private sector projects amounting to PhP330 billion (US$7 billion) or roughly 4 percent of GDP. Aside from stimulating the economy and minimizing the effects of the global onslaught, the ERP also seeks to prepare the country for the eventual upturn. The world may be in a very difficult situation, but opportunities continue to abound, and the Philippines hopes to take advantage of them.

The ERP has the following objectives:

1. Ensure sustainable growth and attain the higher end of the growth targets;
2. Save and create as many jobs as possible;
3. Protect the most vulnerable sectors – poorest of the poor, returning overseas Filipino workers, and workers in export industries;
4. Ensure low and stable prices; and
5. Improve competitiveness in preparation for the global economic rebound.

To achieve these objectives, the ERP will adopt these strategies:

1. Implement budget interventions
2. Accelerate spending for small infrastructure projects
3. Expand social protection programs
4. Save and create jobs
5. Implement off-budget interventions
6. Other measures

For information on how the ERP will be funded, click here.