PH is now Asia's strongest-performing economy, says expert

[jack_bauer]

---

Basura ra na compared sa ubang Asian nations na mas sophisticated ang industrial sector compared sa uban.

mura man kag just now bro, walay sophisticated nga nasod nga wala ng sugod sa wala..

I don't give a crap on whether a company is a Filipino-owned or not, the thing is that the government should not give a preference to any industries just because it's Filipino-owned or something but what the government should do is to let free competition to exist in our economy whether this competing businesses are Filipino or foreign.

Protectionism is useless and will kill the economy further especially with this globalized economy.

kita ka atong news sa Italy bro, ni reklamo na ang Italian businesses sa Korean infestation,.. PREVENTION WILL ALWAYS BE BETTER THAN CURE...

[Joseph20102011]

Those who hate 100% FDI in our domestic economy are either cowards or just xenophobic who never know how to deal with foreigners.

Swallow the non-sense and useless Pinoy nationalism. Let us embrace global economic and political integration for the human survival in the long-run.

[jack_bauer]

Those who hate 100% FDI in our domestic economy are either cowards or just xenophobic who never know how to deal with foreigners.

Swallow the non-sense and useless Pinoy nationalism. Let us embrace global economic and political integration for the human survival in the long-run.

haha... wala man gi bawal ang 100% FDI sa Pinas bro, naa ra may several sector nga gi butang sa negative list kay it has something to do with national security... national security is not senseless useless nationalism..

[Joseph20102011]

mura man kag just now bro, walay sophisticated nga nasod nga wala ng sugod sa wala..

Tanang mga nasod na na-industrialized karon, nasalig na sa FDI aron lang mahimong industrialized sama sa China na nagsalig sa FDI aron lang musaka ang ilang industrial input.

kita ka atong news sa Italy bro, ni reklamo na ang Italian businesses sa Korean infestation,.. PREVENTION WILL ALWAYS BE BETTER THAN CURE...

Look at Italy, for the last 20 years, they are economically stagnant because their government tends to in favor some local business interests compared to real foreign competition.

[jack_bauer]

unsa may imong analyses sa atong ekonomiya karon bro, 60/40 ug 100% FDI lang gihapon...

[jack_bauer]

Look at Italy, for the last 20 years, they are economically stagnant because their government tends to in favor some local business interests compared to real foreign competition.

diha ka nasayop bro, Italy is in the brink of economic catastrophe right now due to too much liberalization.. and misguided fiscal regulations...

wa pa gyud diay ta nka learn sa mga BUBBLES sa merika ani bro.. too much in everything will kill us.. ehehehe

[Joseph20102011]

haha... wala man gi bawal ang 100% FDI sa Pinas bro, naa ra may several sector nga gi butang sa negative list kay it has something to do with national security... national security is not senseless useless nationalism..

Do you think allowing 100% FDI in mining, oil/gas exploration, agriculture, public utility, banking, media, health care, tourism, and power sectors would endanger our national security?

Ask Singapore, Japan, South Korea, Taiwan, Russia, Britain, United States, Canada, Australia, and Brazil if their natural security were threaten with 100% FDI of their respective domestic economies.

Putting equity restrictions against foreign investments in the constitution is just plain haste against foreign competition just to protect the businesses of few local oligarchs.

[jack_bauer]

Tanang mga nasod na na-industrialized karon, nasalig na sa FDI aron lang mahimong industrialized sama sa China na nagsalig sa FDI aron lang musaka ang ilang industrial input.

syalan ba gud diay bro, kung naa diay mo pull out ani nga bisan 20% sa FDI, collapse diay dayon ning ekonomiya bro..

kung atong gamitan ug regression analysis ni bro, dili kaha maong daghan FDI investments ning mga nasoda kay tungod lig-on ilang foundation/fundamentals?

[jack_bauer]

Do you think allowing 100% FDI in mining, oil/gas exploration, agriculture, public utility, banking, media, health care, tourism, and power sectors would endanger our national security?

Ask Singapore, Japan, South Korea, Taiwan, Russia, Britain, United States, Canada, Australia, and Brazil if their natural security were threaten with 100% FDI of their respective domestic economies.

Putting equity restrictions against foreign investments in the constitution is just plain haste against foreign competition just to protect the businesses of few local oligarchs.

agriculture palang daan bro, kung e sabotage hurot tang tanan ani.. ehehehe

mas maayo pa cguro bro, before ni nato e implement NO restriction policy, buhatan nig individual laws kani nga sector.. di man sd gyud ko 100% against anang 100% FDI as long as naay security/protective measures sa kani nga mga sectors

[Joseph20102011]

diha ka nasayop bro, Italy is in the brink of economic catastrophe right now due to too much liberalization.. and misguided fiscal regulations...

Economic Problems of Italy

Italy is facing a economic serious crisis with bond yields rising close to 7%. They also face the prospect of recession and slow growth in the coming years.

Bond Yields on UK, Italian and German Debt


Firstly, there is a significant difference between Greece and Italy. Greece was fundamentally bankrupt. It's budget deficit, and public sector debt was too large for it to cope. A debt restructuring was inevitable.

debt
source: budget debt EU

Italy is actually running a primary budget surplus (this means if we exclude the cost of interest payments on its debt, Italy has a 'primary' budget surplus - very different to the UK) Italy doesn't have the highest public sector net debt in the EU either.

source: FT

Italy's fiscal deficit is lower than many other countries.

It seems bizarre a country with a primary budget surplus can be facing a liquidity crisis that Italy is.
Reasons for Italian Crisis

Recession. Austerity packages (spending cuts) and fears about the prospects of the Eurozone have precipitated a fall in consumer spending and economic growth in Italy. It is forecast Italy will remain in recession in 2012 and 2013. This negative growth will lead to a fall in tax revenues and higher government spending on unemployment benefits. Markets don't want to buy Italian debt because of fears over lack of economic growth will make it very difficult to reduce their debt to GDP ratio.

Poor Growth Record

Due to a combination of political instability, corruption and poor productivity growth, Italy has developed a poor track record of economic growth in past two decades.

source: economist

Long Term Debt.

Though Italy's budget deficit (annual deficit) is quite low, public sector debt is over 110% of GDP, which is giving cause for concern. The problem is that it is quite difficult to reduce this debt / GDP ratio given - how much they spend on interest payments, and the poor prospects for GDP Growth.

Ageing Population.

The long term debt problem is not helped by Italy's ageing population. This will reduce income tax revenues and require greater commitment to state pensions over the next few years. Italy has one of the lowest birth rates in the world.

Fundamental Uncompetitiveness.

Since joining the Euro, Italy has seen its relative competitiveness decline. Labour costs have risen 40% compared to Germany; this has contributed to a 70% fall in direct investment since 2007. Like Greece and Portugal, Italy can't devalue so it is left with uncompetitive exports. This uncompetitiveness leads to lower economic growth and more pressure on debt/GDP ratio.

No Lender of Last Resort

Italy is not bankrupt, but it may experience a liquidity crisis (it may be unable to 'roll over its debt' i.e. sell enough bonds to meet current budget requirements in short term). This liquidity shortage should be quite a small risk. But, because there is no lender of last resort for Italy (i.e. ECB will not buy Italian bonds to roll over debt) Markets find Italian debt much less appealing. If there was a guaranteed lender of last resort, Italian bond yields would be much lower. People would have much more confidence in holding Italian debt. However, because there are fears over liquidity shortages this has pushed up bond yields; this increase in bond yields has increased the cost of servicing Italy's debt


Conclusion.

Italy suffers from:

Having wrong exchange rate. They have lost competitiveness and can't devalue leading to lower growth

Monetary policy is too tight for Italian economy.

There is no lender of last resort.

EU austerity measures (spending cuts) are forcing Italy back into recession leading to a predicted slump in tax revenues. This is making markets nervous about future prospects for Italy.

There seem no practical solutions to returning to strong growth. Again the only medicine seems to be 'spending cuts' and internal devaluation. But, this will be a long drawn out process.

Political instability. Lack of strong cohesive government makes markets more nervous to hold Italian debt.

Similarities between Italy and Greece.
Both countries:

Share decline in competitiveness
Would benefit from devaluation, but in Euro can't
Are experiencing high unemployment and economic stagnation
Must regret being in the Euro.

Related

Facts on European Debt Crisis
Bond Yields on EU debt
Is the UK like Greece and Italy?

Economics Essays: Economic Problems of Italy