by: Sarah Joson
Monday, January 18, 2016 |
According to Department of Finance (DOF) Undersecretary Gil S. Beltran in his latest economic bulletin, the Philippines will go through challenges that may spur from today’s volatile financial market. However, he noted that strong macro-economic fundamentals will buoy the country from risks and increased uncertainty.
He explained that sensible macro-economic management within the country has enabled it to make way for better strategies, construct sizeable reserves and minimize exposure to foreign debt, even out prices, and reinforce the banking system. Moreover, he said these improvements will provide fiscal and monetary opportunities and, at some point, margin for the country from external shocks when they happen.
He pointed out that the country’s debt-to-gross domestic product (GDP) ratio noticeably dropped 30 points to 45.4 percent in over 10 years which resulted to a wider fiscal space for the local government. Furthermore, external debt-to-GDP ratio has declined by half to less than 16 percent which was recorded during the end of September last year, making the country less susceptible to forex risks.
As for the private sector, external debt exposure declined by 12.9 percent during the third quarter of last year.
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