Cayaba, Crisel Joy M.Tadeo, Kathleen Mae E.2024-07-292024-07-292022-05-31https://selib.upd.edu.ph/etdir/handle/123456789/128The Covid-19 pandemic has produced unprecedented challenges for both the health and economy of each country. This has been seen in reduced sectoral output attributed to the imposed lockdowns to contain the spreading of the disease. The Philippines sits in the same boat as its debt-to-GDP ratio increases due to the reduced output and increased debts; rising from 54.6% in 2020 to 60.5% in the last quarter of 2021. Some Filipino economists cite this as a “dangerous level” since the international threshold for the debt-to-GDP ratio is 60%. As an archipelagic country, there is a potential to reap the benefits of the vast blue economy of the Philippines. This paper shows the underlying outcome of issuing blue bonds in the country as one of the facilitators of economic recovery from the Covid-19 shock. Blue bonds are a subset of green bonds under the larger term of sustainable bonds which aim to support the sustainability projects related to the ocean economy. Given this, the purpose of the study is to show the viability of blue bond issuance as a contributive solution to lowering the debt-to-GDP ratio of the country. This paper exhibits the forecasted debt- to-GDP ratios in contrast to the forecasted ones after blue bond issuances. In doing so, the GDP share of the Philippine blue economy was forecasted using the type II GVA multiplier, which serves as the induced effect of blue bond issuances. Using the projected blue economy growth, results show that blue bond issuance has a significant impact on facilitating economic recovery through the immense contraction of the debt-to-GDP ratio by more than 50%. Possible channels that can be targeted are the fishing and tourism industry of the country which has shown the most potential in the Philippine blue economy.enbankingblue bondsCOVID-19economic recoveryThesis