CEBU, Philippines - The Philippine economy is seen to fare better than its neighbors in Asia for as long as remittances from the Overseas Filipino Workers (OFWs) will continue coming in.
Rafael S. Alagarra Jr., one of Asia’s renowned economists, said that the economic outlook of the country is generally good while the market holds on to a perception of a recovery, which provides a strong shield against the intense impact of the global economic meltdown.
“The Philippines is not as bad as most countries in the region,” he said.
Alagarra, who is the treasurer of Security Bank Corporation, was in Cebu recently together with other economic experts, to enlighten Cebuanos, particularly Security Bank’s clients, of the economic future of the country, while the world is still haunted with too much uncertainty.
“What is important is the market perceives that we have reached the bottom, at least the reception of worst is over, and businesses think the market is turning up. Businesses may start making money later in the year,” Alagarra said.
Unlike other countries in the region, the Philippines has the strong resistance to weather the world economic downfall, because the country’s economy is not depending largely on exports. The country managed to stay afloat with the aid of the growing OFW remittances, Business Process Outsourcing (BPO) investments, among others.
However, he said since the Philippine economy remains dependent on the global movement, albeit indirectly, thus it has to prepare additional shields.
Domestic consumption is still in healthy position, which helps the economy breath easily compared to other countries, because of continuous inflow of the OFW remittances, he said.
Next year, which is election year for the Philippines , will be another economic booster for the country, as election is always a “natural stimulus” for the Philippine economy.
The only worry of the Philippines that has to be given special and optimum attention is to provide jobs for the retrenched workers, especially in the export sector.
The Philippine government, he said should be very watchful in the employment development of OFWs, making sure also, that they continue to have jobs in other countries to sustain the remittance figure, which is one of the countries economic boosters.
Alagarra, however expressed confidence that Filipino workers abroad will hold on to their jobs, as most of them are in the health service, education and government services, of which these sectors are unlikely to cut jobs that easy.
Last year’s figure showed a record of US$16.4 billion OFW remittances, a 13 percent increase compared to 1997. This strong remittance inflow has fueled a stronger Philippines , while US and other economic giants are facing severe economic battles.
Compared to the 1997 regional economic crisis, the Philippines is performing very well this time in weathering the global crisis.
Real recovery of the market is seen to go full swing by 2010 as the market is starting to nurture a positive perception, he said. – THE FREEMAN