Implications for Philippine economy

June 27, 2011 at 9:34 am (Economy, Europe, Greece, Greece Crisis, Greece Debt Crisis, Philipppine internal problems) (, , , , , , , , , , , , , , , )

If Europe suffers economic shortfalls, Philippine business and the entire economy will terribly be affected, despite the fact that the economy is boosted by OFW remittances and exports at the present. If a European crisis starts kicking, even our exports will suffer a painful slowdown. GDP markers will shoot down as a result.

Remittances will already be affected by the trend in the Middle East of hiring locals instead of foreign workers. To the uninitiated, a lot of poor Saudis live below the marginal subsistence line in their land. A compassionate Saudi government for instance, cannot afford to let its own people live in inhuman conditions. Thus the new emergent policy of easing out foreign workers and placing locals in their stead. Such move could affect the myriad of Filipino workers now in the Middle East, most especially if the other MidEast countries follow suit.

This inevitably does not augur well for the administration of Pres. Benigno Aquino. With a slew of internal problems now troubling and soon to hit the Philippines like multiple whammies, with its business feeling the pain of an unresponsive and penny pinching regime, there is nowhere for the country to go but down.

Any cosmeticizing by the Malacanang Palace cannot save the day.

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