The Philippine economy intends to sustain its growth trajectory but remains confronted with vulnerability to external headwinds. While countercyclical fiscal policy stands as an advocated tool in response to negative impacts of shocks, there is a need for a more robust understanding with respect to the effect of such policies in the Philippine context. Against the backdrop, this study therefore centers on the general objective of producing evidence on the effectiveness of countercyclical fiscal policy in mitigating the adverse effects of external shocks in light of sustaining economic growth.