How the Economy is Affected by the Elections
Through understanding each presidential candidates’ platform, we can anticipate the type of leadership we will have. Every six years, we are given a chance to choose the next person who will lead the country, transferring the political power to another. During that specific timeline, how is the state of wealth and production handled?
The COVID-19 pandemic has taken hold of the economy as seen from every aspect of the system— from education to production and workers. We have witnessed other recessions due to general and academic lockdowns from the past two years. Overall, the economy shrunk by 9.4% in 2020. However, according to the Inquirer, the country’s Gross Domestic Product (GDP) was expected to rise by P19.4 trillion last 2021. Due to the wholesale and retail trade, the main contributor for the economy’s development in 2021, the economy’s GDP grew by 7.1% (Philippine Statistics Authority, 2021).
Cielito Habito, the former director of the National Economic and Development Authority (NEDA), states that the elections heighten the country’s economy. All campaign materials’ expenses such as advertisements, talent fees and salaries for the people involved in the campaign, and other different accommodations contribute to the money that is in circulation and spent during election season. The private sector also adds a massive impact on the sudden change in the economy and the media due to all the campaign materials such as posters, commercials, caravans, and many more keeps the money revolving around. With all the money in circulation, the expenses that have been spent in the process increase our GDP.
Regardless of the unprecedented crisis for the past few years, economists believe that the Philippines is almost close to a full-swing rebound in the economy. Makoto Tsuchiya, an Oxford Economics assistant economist, reports that the economy is expected to continuously increase by 6.6%. “Even if the health situation is toppling, the country has already stimulated the percentage point lower by 0.1.” Tsuchiya states. He continues to state that due to the travel ban and the readiness for any uncertainties had a wide impact in the country for the first quarter of 2022.
In the long run, we can only see the election’s long-term impression on the economy in the next elected leader of our country. As per the current state of our economy, it is a reminder that we should vote for people who are worthy leaders!
