PHL economy now in a “unique” situation

PHL economy now in a “unique” situation

by UA&P News Desk on September 6, 2011 - 3:28 pm

From the Philippine Star, by Ehda M. Dagooc

CEBU, Philippines – The Philippines is now in the unique state, in terms of economic situation. While in the past the country’s problem was how to live within the very limited resources, today, the problem is how much of extra resources should be used.

Economist Emilio Antonio, of the University of Asia and the Pacific (UA&P) said that the amount of dollar the Philippines earns far exceeded what it spent.

“We have been experiencing surpluses in our current account. Despite the consistent deficits in our trade account, we have more than offset this with OFW remittances,” he said in a recent economic briefing.

He said the Philippines now, is enjoying a high savings rate. This has caused problems to the banks, “they [banks] more funds in their hands than what the borrowers are willing to dip their hands on.”

The country now is “facing” relatively abundant dollar supply that its international reserves (gross and net) can finance almost one year of our import requirements and “we continue to build these up as our dollar earnings exceed our dollar expenses.”

In addition, “hot money” or portfolio capital is finding its way again on the Philippine financial market with two evident consequences; the peso-dollar rates has been on long-term decline, and the inflow of portfolio capital has energized the country’s markets for stocks and debt instruments.

Read full story on PhilStar.com »

Bookmark and Share

Share this page: