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PHL economy fit to face impact of another global crisis – Finance chief


Should the ongoing uncertainties in the US and Europe trigger another financial crisis, the Philippines is in a much better position to withstand its potential impact, economic managers told investors during the mid-year economic briefing Friday. Finance Secretary Cesar Purisima said that the country's fiscal standpoint is significantly better than expected as of end-August. “Nobody is going to be immune but we’re in a better position now," Purisima said. Latest data from the national government indicate that it posted a P9.22-billion surplus in August, due largely to a slight increase in government spending and higher revenue collections. In the first eight months of the year, the country's deficit was pegged at P34.493, from P228.104 billion budget gap a year earlier. August revenues rose slightly to P124.148 billion, up 15.16 percent P107.806 billion posted in August last year. Expenditures rose by 15.16 percent to P114.928 billion. Fears of another financial meltdown spread anew as the Federal Reserve announced the possibility of serious risks from Western markets. Purisima, however, noted that the country's diversified trade dealings will help cushion the economy from such a development. “Our trade-mix has increased more toward Asia," he said. The Finance chief noted that the country now has a "lot of fiscal space" should the need to stimulate the economy arise. He added that the uncertainties from Western markets should prompt investors to seek opportunities in emerging markets such as the Philippines. — JMT/VS, GMA News

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