The Philippines is in a better financial position than most of its Asian neighbors to withstand the world’s fiinancal meltdown as it brings havoc to emerging economies in Asia and elsewhere in the world.
Some economists and leaders of various chambers of commerce in the Philippines, believe that the economy will be spared from the effects of the current financial crises being experienced by developed countries.
John Forbes, Chair of the American Chamber of Commerce in the Philippines said that the recession will happen only following two successive quarters of negative economic growth, something the Philippines has not experienced since the Asian financial crises about a year ago. "The Philipines has had a long run’", he said.
The world Bank likewise earlier noted that the Philippine economy is better prepared than most economies in the Asian region to face the effects of the ecopnomic slowdown that is happening in most developed countries.
One factor that keeps the Philippines economy afloat is the basic support that the Overseas Filipino Workers (OFW’s) are giving in terms of inward foreign exchange remittance which is now estimated at US$15 billion.
In a survey recently conducted by the Makati Business Club, most businessmen expects a recession by next year when the global financial turmoil reaches the Philippines. But government economic managers disagree with the views of the business sector. They think that there will be no recession but an economic slowdown is possible.
"What you mean by economic slowdown is when your neighbor loses his job. By recession, its you who loses the job" Gary Teves, Philippine Secretary of Finance, was quoted as saying.