Philippine Department of Finance says the country is resilient in the face of external risks arising from the recent developments in the Chinese stock markets, owing in part to decisive responses from the People’s Republic of China and to the Philippines’ own macroprudential safeguards.
“Strong macroeconomic fundamentals and a market-based framework differentiate the Philippines. The market recognizes the sound economic stewardship and deep-seated reforms over the past 5 years, shielding the economy from external shocks and bolstering domestic demand buoying the economy,” Chief Economist Undersecretary Gil S. Beltran said today, July 22.
DOF said there is no fear of contagion reaching the Philippines. In fact, UBS reports that the Philippines joins other countries like Taiwan, Korea, and Vietnam as top electronics exporters to China whose overall export volumes did not suffer from the recent developments.
Further, in Capital Economics’ Emerging Asia Economic Outlook for Q3 2015, the Philippines was named a “top performer,” expected to “remain one of the region’s fastest growing economies over the forecast period, helped by recent improvements in the business environment, a strong fiscal position, and improving prospects for exports.”
“Structural reforms have been put in place; we continue to open up the financial sector and let market forces drive the economy in a level playing field with a clear regulatory environment. Our greater reliance on domestic financing, as well as our emphasis on broadening fiscal space and good management of local government finance ensure we run a tight ship over troubled waters,” Undersecretary Beltran said.