Weak US Economy a disaster to RP’s growth
The continuing slump of the US economy has a chilling effect on the Philippines economic stability. Economic experts predicted that export, tourism, employment, dollar remittances and BPO or Business Process Outsourcing will be directly hit by the threat of economic recession in the US. Though, US President George W. Bush took the necessary steps to prevent a recession, the threat nonetheless is still hanging in thin air. `
The US remains the top destination of export products from the Philippines. Any change in economic atmosphere would eventually hurt productions to the detriment of local manufacturers and workers. The Philippines is heavily dependent on the US economy long before the start of globalization.
Tourism industry is one of the income generations for the country and based on the data presented, there are 3 million tourists who came to the Philippines in 2007, 18 % of them Americans. And because of the US downturn, American jetsetters and adventurers might avoid to travel and just stay home for good.
The business process outsourcing industry which is all American doing call center business in the country would perhaps experience the same fate of weakness. Call centers in the Philippines services mostly US clients.
Failure on the part of the US to lift their economy would bring unemployment which might affect Filipinos working in the US. Their dollar remittances would dwindle or gone indefinitely. The weak US economy really sends jitters to the world and needs to be revived as soon as possible. A quick remedy with a long term result is what the US should need to do.