How’s is the Philippine Economy surviving under siege of all the political noise? According to Kyran Curry of S&P, the Philippine economy is fundamentally stable with credit ratings unchanged. An upgrade depends on the fulfillment of the 10 point economic agenda while a downgrade is dependent on the uncertainty in the political and economic policies.
What do we have to know about our present economic situation?
$79.9 Billion of foreign fund retuned last Sept 30,2016. According to Bloomberg Philippines. It’s not enough to cover the net outflow of last september but at least the bleeding stopped and a correction is seen.
Nikkei Philippine’s PMI which an indicator of our manufacturing sector increased to 57.50 from 55.30 last August. According to Alex Gill, at IHS Markit, said: "While political uncertainty has had an impact on the depreciation of the peso in recent months, the adverse effects of higher import costs will be offset by cheaper exports, and with sound fundamentals the sector looks set to continue to grow in coming months." (http://asia.nikkei.com/Markets/Nikkei-PMI/Philippines-PMI-up-to-57.5-in-September)
Philippine Economic Zone Authority (PEZA) registered 78 Billion pesos in investment for the first 9 months. This sets in an increase of 3-5% compared 2015 according to Deputy Director Yusingco.
World Bank reiterated a “Significant Upside” for the Philippine Economy. Its forecast of an inflation rate of 2.0 % and GDP growth of 6.4% is at par with BSP, ADB and IMF forecast. They believe that the Philippine Economy is set to be the outperformer of the region.
In a nutshell, we are holding steady regardless of the all the political noise but for how long? I would surmise and reaffirm my confidence with in the Philippine Economy and the Filipino people. We will survive these short to midterm volatilities and regain our climb to the top.
Let’s all unite to create a better country for our children and the future generations ahead. Let’s stop discriminating and start cooperating.
Mabuhay ang Pilipinas!!!