BAGUIO CITY — The City Council has approved the Economic Continuity and Resilience Plan aimed at protecting vulnerable residents and small businesses from financial shocks brought by global crises and rising fuel costs.

The plan, earlier proposed by Mayor Benjamin Magalong, seeks to ensure continued access to essential services while stabilizing local market prices. Magalong warned that geopolitical tensions in the Middle East have triggered an economic slowdown that could surpass the impact of the Covid-19 pandemic.

He noted that national gross domestic product growth dropped from an average of 6.0 percent to 3.0 percent in the final quarter of 2025, with projections for the first half of 2026 expected to fall below 2.0 percent due to weakened government and consumer spending.

City Budget Office estimates show Baguio City is projected to earn P3.5 billion in 2026, but revenues may decline to P3.3 billion by 2027. City Budget officer Leticia Clemente said these constraints will challenge the city’s ability to meet rising public needs amid the ongoing energy crisis.

All executive offices in the city government will integrate the resilience plan into their respective budgets and reassess programs to ensure fiscal efficiency.

The framework identifies four priority levels for funding and implementation, with an estimated annual allocation of P1.11 billion.

Priority Level 1 receives the largest share at P948.2 million, focusing on energy, water, food supply, and transport logistics. Other allocations support small business recovery, digital infrastructure, domestic tourism, and long-term renewable energy and waste-to-resource projects.