What Is In Store For The Philippine Economy?

peter's picture

"FedEx Corporation, the world's largest air cargo shipper, will close its air shipment hub in Subic Bay, northern Philippines, and move it to Guangzhou, capital city of China's Guangdong Province, sources reported."

http://www.chinaknowledge.com/Newswires/News_Detail.aspx?type=1&NewsID=20917

"MANILA--Philippine exports plunged by a record amount in December, dragged down by a contraction in electronics shipments and weaker sales to major markets in China, Japan and the U.S...Preliminary data on goods exports showed that December shipments dropped 40.4% to $2.67 billion from $4.48 billion in the same period a ..."

http://online.wsj.com/article/SB123425036453967335.html?mod=googlenews_wsj

These are some pretty drops in the bucket.  What does this mean for expats?

economy

at the moment the clowns in the government are in denial. they claim that the philippines are not affected by the worldwide cisis and they believe that the philippines will ride out any recession. this is another proof that there is no logic and no common sense in the philippines.

in reality the crisis is already there or will be there within weeks. what does that mean for people living there?

remittances are dwindling, exports shrinking

unemployment and poverty will increase, there will be more crime

the peso will depreciate to 50 or more, life for foreigners will become cheaper

fred

i guess one good thing about recession

i guess one good thing about recession is that people are more desperate and will accept less money for property, if a person can be patient enough.  too bad the savings have shrunk so that overall it's roughly a wash, at least in my case.  anybody smart enough to have kept their money in gold will have done well i suppose.

remittances not down in December?

I just ran across this article: 

http://in.reuters.com/article/asiaCompanyAndMarkets/idINMAN36008320090216

Interestingly, remittances, according to the article were even year-over-year for December.  I have a hard time believing it, but still, could be true.  If so, I wonder, how was that possible?  Were OFW sending home savings or earnings?

remittences

of course remittances are going down. as you know there is no logic in the phils...

even in europe we have examples of countries manipulating their gdp numbers. greece got busted for doing that.

would anyone who knows the phils trust the official numbers?

politicians want to keep their worthless peso high so the can travel cheaper.

fred

remittances

here is another article from bbc:

http://news.bbc.co.uk/2/hi/asia-pacific/7911698.stm

fred

now at last official rates are showing decreases in remittances

official remittance rates are showing drops at last:

http://www.abs-cbnnews.com/business/04/27/09/double-digit-drop-ofw-funds...

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