Recovery- A period in a business cycle following a recession, during which the GDP

rises.

-an improvement in the economy marking the end of a recession or decline.

Formula for Philippines Recovery

The World Bank has cited six priority areas in which improvement is needed for the Philippines to
simultaneously achieve the twin goals of economic recovery and poverty reduction.

According to the bank:

* The Philippines needs to enhance human development and social safety nets for the poor. It needs to
build a caring and prosperous society and the economic recovery program should be accompanied by
measures to strengthen the social safety net and to improve poverty targeting and action plans to reduce
poverty and income inequalities.

* It needs to accelerate environmental sustainable growth of agriculture by making it more competitive

internationally and improving natural resource management. A national urban development agenda needs
to be developed and implemented to address the challenges of urban service provision and threats to
environmental health in urban areas.

* It needs to develop infrastructure, which is essential to support stronger growth. Critical reforms need to
be undertaken in the power and transport sectors.

* It needs to create an enabling environment for private sector growth, which will be crucial in generating
stronger growth and jobs for the expanding labor force.

* It needs to improve governance and combat corruption. The system for economic and political
governance needs improvement in order to create a more effective partnership between the national and
local governments and enhance the peace and order of the nation.

Ways to promote economic recovery.

1. maintain macroeconomic stability

2. enhance investor confidence

3. accelerate measures to strengthen the banking system and corporate sector

4. mobilize long-term savings

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How to maintain economic stability?

A stable economy provides a framework for an improved supply-side

performance i.e.

• Stable low inflation encourages higher investment which is a determinant of

improved productivity and non-price competitiveness

• Control of inflation helps to main price competitiveness for exporters and

domestic businesses facing competition from imports

• Stability breeds higher levels of consumer and business confidence –

sentiment drives spending in the circular flow

• The maintenance of steady growth and price stability helps to keep short
term and long term interest rates low, important in reducing the debt-servicing
costs of people with mortgages and businesses with loans to repay

• A stable real economy helps to anchor stable expectations and this can act
as an incentive for an economy to attract inflows of foreign direct investment .