by: Sarah Joson
Thursday, July 23, 2015 |
The Philippines’ strong macroeconomic fundamentals are seen to back the country through external headwinds that could shake global financial markets this year.
According to Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. there are three external events that should be watched closely: the pending interest hike in the United States, the reforms and crisis in Greece, and the recent crash of China’s stock market.
The official said this could lead to panic and aversion among investors and later result to relocating funds from emerging markets to more established investment hubs like the United States. However, he noted that the Philippines has strong macrofundamentals and that asset managers will consider and look at fundamentals. Moreover, should there be an outflow in the country, it will be manageable.
Finance Department Undersecretary and Chief Economist Gil S. Beltran recently added through a statement that the Philippines not only has strong macroeconomic fundamentals, it also has a market-based framework that makes the country unique. In fact, the Philippine market recognizes the sound economic stewardship and deep-seated reforms which were cultivated over the past five years set to shield the economy from external shocks, and boost economic demand.
Usec. Beltran also explained that structural reforms have been recently launched by regulators after the 1997 Asian financial crisis and the 2008 global financial crisis.
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