During the Cabinet meeting last March 24, 2009, National Economic Development Authority (NEDA) Secretary-General Ralph Recto gave an update on the impact of the global crisis on the Philippine economy. In a powerpoint presentation before the full Cabinet presided by President Arroyo, Secretary Recto showed that, based on current authoritative economic data and on a study conducted by the Asian Development Bank (ADB), the Philippines is coping well in the face of worldwide crisis, indeed its performance surprisingly even better than that of other countries’ with highly developed economies.
For instance, in terms of gross domestic product (GDP), the Philippines has registered POSITIVE growth of 4.5% which is clearly higher than Malaysia’s 0.1%; while several developed countries registered NEGATIVE growth in their GDPs, namely: USA, -0.8%; Germany, -1.7%; United Kingdom (Great Britain), -1.9%; Hong Kong, -2.5%; South Korea, -3.4%; Singapore, -4.2%; Japan and Thailand, -4.3%.
Also, in their projections of future GDPs, several developed countries have projected NEGATIVE growth in their GDPs, to wit: Spain, -1.7%; France, -1.9%; Italy, -2.1%; Germany, -2.5%; USA, -2.6%; United Kingdom, -2.8%; and Japan, 5.8%. On the other hand, the Philippines has projected a 5% GDP, an increase of 0.5% from its present positive GDP of 4.5%.
So, although there’s a palpable contraction in world economy, a contraction that is adversely affecting even highly developed economies, the Philippine economy has managed to show positive, albeit moderate, growth in GDP.
The data on Philippine exports show negative numbers: 14.8% reduction of exports in October 2008 and 40% reduction in December 2008 and January 2009. But the negatives are cushioned by strong market demand from Filipino consumers for the unexported goods/products. Kung baga, sa halip na ibenta sa labas, dito na lang sa atin ibinebenta dahil sa malaki at malakas naman ang demand dito sa mga ganung produkto. Kung kayat production keeps growing—at ang ating GDP ay nanatili sa pag-akyat, bagamat marahan lamang, positive pa rin.
Sa isang banda, seguro nakabuti kahit papano na meron tayong malaking populasyon, about 90 million na yata tayo ngayon., na isa sa pinanggagalingan ng ika nga’y strong consumer demand. Ang mga bansa or city states tulad ng Singapore at Hong Kong na export-oriented pero may maliit na populasyon ay siyang lubhang naperhuwisyo nitong global crisis o ng contraction ng world economy.
Singapore and Hong Kong have each a population of only six million, more or less. (I think Metro Manila’s population is bigger than their combined population.) Ang kaunlaran nila ay nakasalalay sa kanilang exports. Pag bumagsak ang demand for their export products, tulad nga ng nangyayari ngayon, kanino maibebenta ng Singapore at ng Hong Kong ang kanilang export products?
Pagkat maliit lang ang kanilang populasyon at dahil dito maliit at makitid lamang ang kanilang consumer market samantalang malaki naman—at sobra-sobra pa nga ang imbertaryo ng kanilang export items—matindi ang pagtama ng world recession sa kanila. The productive capacity of Singapore and Hong Kong can no longer be in high gear, hence their negative GDPs.
In the area of employment, it is a pleasant surprise to know that employment actually grew with new workers (565,000 net employment in January 2009) being added to the ranks of the employed. This figure is higher by 148,000 net employment compared with January 2008 employment figures.
There were only 50,380 displaced workers as of January 2009—which constituted a meager 1.5% of the total actually employed in large companies here. On the other hand, the number of Overseas Filipino Workers (OFWs) who were displaced is only 6,500. These numbers indicate that the impact of the global crisis on the employment situation here is rather miniscule, and it impacted only the domestic workers, mostly those in Region IV-A (CALABARZON area), not the OFWs.
Our OFWs are almost untouched by the worldwide recession. The data shows the lay-offs of OFWs occurred mostly only in Taiwan (78% of the 6,500 displaced OFWs). This is understandable because Taiwan is hardest hit in the Southeast region by the global crisis—its GDP a negative 8.4%!
Eto pa ang isang parte ng report ni NEDA Secretary Recto na maganda. The inflation rate has dropped to only 3.0% – 5.0% in January 2009, from the previous high of 9.3% in 2008, kung kayat ang mga pamilihin ay abot ng bulsa ng mga pangkaraniwang mamamayan. The price of oil has also dropped in the world market, impacting on the low cost of fuel here. Likewise, domestic liquidity—o yung salaping umiikot sa ekonomiya—has remained in positive high levels due to the undiminished strong inflows of OFW remittances averaging US$16.0 million a year.
Listening to Sec. Recto’s presentation, I felt a great sense of relief. His updates warmed the heart. Very authoritative and enlightening. There is much hope for our country and for our people, even in the midst of economic gloom that pervades most parts of the world. There is a barangay in Angeles City, Barangay Sapangbato, which calls itself “LUPANG PINAGPALA NG POONG MAYKAPAL .” That name may well apply to the Philippines. God bless our land, and our people, and our leaders.
And God bless you, our readers. Mabuhay!
For instance, in terms of gross domestic product (GDP), the Philippines has registered POSITIVE growth of 4.5% which is clearly higher than Malaysia’s 0.1%; while several developed countries registered NEGATIVE growth in their GDPs, namely: USA, -0.8%; Germany, -1.7%; United Kingdom (Great Britain), -1.9%; Hong Kong, -2.5%; South Korea, -3.4%; Singapore, -4.2%; Japan and Thailand, -4.3%.
Also, in their projections of future GDPs, several developed countries have projected NEGATIVE growth in their GDPs, to wit: Spain, -1.7%; France, -1.9%; Italy, -2.1%; Germany, -2.5%; USA, -2.6%; United Kingdom, -2.8%; and Japan, 5.8%. On the other hand, the Philippines has projected a 5% GDP, an increase of 0.5% from its present positive GDP of 4.5%.
So, although there’s a palpable contraction in world economy, a contraction that is adversely affecting even highly developed economies, the Philippine economy has managed to show positive, albeit moderate, growth in GDP.
The data on Philippine exports show negative numbers: 14.8% reduction of exports in October 2008 and 40% reduction in December 2008 and January 2009. But the negatives are cushioned by strong market demand from Filipino consumers for the unexported goods/products. Kung baga, sa halip na ibenta sa labas, dito na lang sa atin ibinebenta dahil sa malaki at malakas naman ang demand dito sa mga ganung produkto. Kung kayat production keeps growing—at ang ating GDP ay nanatili sa pag-akyat, bagamat marahan lamang, positive pa rin.
Sa isang banda, seguro nakabuti kahit papano na meron tayong malaking populasyon, about 90 million na yata tayo ngayon., na isa sa pinanggagalingan ng ika nga’y strong consumer demand. Ang mga bansa or city states tulad ng Singapore at Hong Kong na export-oriented pero may maliit na populasyon ay siyang lubhang naperhuwisyo nitong global crisis o ng contraction ng world economy.
Singapore and Hong Kong have each a population of only six million, more or less. (I think Metro Manila’s population is bigger than their combined population.) Ang kaunlaran nila ay nakasalalay sa kanilang exports. Pag bumagsak ang demand for their export products, tulad nga ng nangyayari ngayon, kanino maibebenta ng Singapore at ng Hong Kong ang kanilang export products?
Pagkat maliit lang ang kanilang populasyon at dahil dito maliit at makitid lamang ang kanilang consumer market samantalang malaki naman—at sobra-sobra pa nga ang imbertaryo ng kanilang export items—matindi ang pagtama ng world recession sa kanila. The productive capacity of Singapore and Hong Kong can no longer be in high gear, hence their negative GDPs.
In the area of employment, it is a pleasant surprise to know that employment actually grew with new workers (565,000 net employment in January 2009) being added to the ranks of the employed. This figure is higher by 148,000 net employment compared with January 2008 employment figures.
There were only 50,380 displaced workers as of January 2009—which constituted a meager 1.5% of the total actually employed in large companies here. On the other hand, the number of Overseas Filipino Workers (OFWs) who were displaced is only 6,500. These numbers indicate that the impact of the global crisis on the employment situation here is rather miniscule, and it impacted only the domestic workers, mostly those in Region IV-A (CALABARZON area), not the OFWs.
Our OFWs are almost untouched by the worldwide recession. The data shows the lay-offs of OFWs occurred mostly only in Taiwan (78% of the 6,500 displaced OFWs). This is understandable because Taiwan is hardest hit in the Southeast region by the global crisis—its GDP a negative 8.4%!
Eto pa ang isang parte ng report ni NEDA Secretary Recto na maganda. The inflation rate has dropped to only 3.0% – 5.0% in January 2009, from the previous high of 9.3% in 2008, kung kayat ang mga pamilihin ay abot ng bulsa ng mga pangkaraniwang mamamayan. The price of oil has also dropped in the world market, impacting on the low cost of fuel here. Likewise, domestic liquidity—o yung salaping umiikot sa ekonomiya—has remained in positive high levels due to the undiminished strong inflows of OFW remittances averaging US$16.0 million a year.
Listening to Sec. Recto’s presentation, I felt a great sense of relief. His updates warmed the heart. Very authoritative and enlightening. There is much hope for our country and for our people, even in the midst of economic gloom that pervades most parts of the world. There is a barangay in Angeles City, Barangay Sapangbato, which calls itself “LUPANG PINAGPALA NG POONG MAYKAPAL .” That name may well apply to the Philippines. God bless our land, and our people, and our leaders.
And God bless you, our readers. Mabuhay!
