RP - standing still despite the financial crisis

[chuck_scofield]

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It's amazing to find out that RP and other emerging markets have quickly managed the global economic crisis compared with our Western counterparts, who are still struggling to cope up with this problem. It speaks well of how our govt. has carefully mapped out its plan when they anticipated that this problem will occur.

Instead of following the more conservative approach, which is to tighten the monetary policy and prevent peso depreciation, PGMA made the right decision when she pushed to accelerate spending. This was crucial, since countries who adopted the conservative approach are still having difficulties with their business sector. Market economists are wrong, when they projected that peso depreciation will harm the country because the depreciation help increase OFW remittances. Now, other countries are following this type of approach and when fiscal spending is high, it will certainly be beneficial to the infrastructure sector, thus, creating new job opportunities.

[Tarmac]

Does the title mean that the Philippines is still standing despite the crisis or standing still (as in not moving) despite the crisis?

Seriously though, we hope the optimistic projections by economists are true. We're going to be looking at strong GDP growth in 2010 because of election-related spending. That's when the Pinoys get back some of the hard-earned taxes siphoned off by politicians. Quickie public works projects are implemented and of course, on election day votes are bought. Wait. I forgot the people who sell their votes are the type who don't pay taxes in the first place. Think of the elections as some form of stimulus, getting money in the hands of ordinary folk and hoping the multiplier effect cranks into high gear.

[vergievergz]

worse is yet to come, IMO..so,tighten ur belts...^_^

[miyay]

^tarmac, you are so right about quickie projects. atat kaayo ang mga lgu magloan karon para makahimo og projects. sige follow up sa ila mga applications.

[ian_1983]

Yes, we survived but unfortunately we are not standing as you said..but we are kneeling.
Besides we are used to this financial crisis anyway..dugay ra; And unlike our western counterpart nga wala ma anad..when this crisis happens..they immediately tighten their belts, curved spending, increase savings which eventually leads to the recession. Unlike natoh nga dugay raman ta ng tight sa atoh belt.
and as for the depreciation of the pesos, this will hurt the ordinary filipinos coz of high cost of importing raw materials and products; but good for the OFW's and exporters.

[lestat1116]

musta na ang export industry? murag naman og dying dri sa cebu. nagluba.anay og shutdown or trying to survive. mura wala ra man ang government.

[Tarmac]

musta na ang export industry? murag naman og dying dri sa cebu. nagluba.anay og shutdown or trying to survive. mura wala ra man ang government.

Yeah, parts of the export industry are dying, particularly sectors that make products that can be made in China for 1/3 the price. Walay comparative advantage. But what can the government really do? Bail out the manufacturers? The government itself is in need of a bailout, especially on the back of massive shortfalls in revenue collection.

In the case of those export industries, the global crisis is but the final nail in their collective coffins. For many, orders were drying up even at the height of the boom cycle. China was already taking away orders from Philippine companies years ago. So for many, the writing is on the wall, spelled out in bold letters. It's time to move out of those sectors and leave them to China, and go do something else, something for which we possess a comparative advantage.

Like they say, in the beginning, God created the universe. Then China made everything else.

[shaxyra]

mao nang giingon maayo nang naa sa ubos daan kay kong matagak mobo ra.. hehe

[Jerry Michael]

Hagbay ra ga urong ang Pilipinas. Stood still ---meaning wala jud mosibog since kaniadto pa! Nabiyaan na sa ubang nasud sa Asia.

[rage963]

because we are not a big player in the world mao nang dili kaayu ta affected sa crisis!!!!

in short kung dako kag puhunan dako2x kag alkansi....

ang dagkog puhunan mao man ang USA, UK, Japan mao affected kaayu sila sa crisis..