This article explores different methods to estimate the potential output and output gap in the Philippines, which are crucial for setting monetary policies. The researchers used various approaches like statistical filtering, production function, and macroeconomic modeling to estimate potential output. They also introduced labor and financial market conditions as factors affecting potential output. The study found that different models can be used to estimate the output gap and that these estimates can help forecast inflation. Additionally, the researchers looked into measuring total factor productivity in the Philippines using production functions.