An Analysis of the Decline of the World Market to the Philippine Economy

Topics: Philippines, Overseas Filipino, United States Pages: 2 (773 words) Published: February 29, 2012
An Analysis of the Decline of the World Market to the Philippine Economy It was but a deafening thunder when the world experienced the Global Economic Crisis. The most depressing about this issue is that most of the first world countries suffered a lot on this including United States of America, main parts of Europe and Britain. The recession affected much of every country’s economy. In the Philippines, it was declared that the economy is stable, though not really, is not yet in recession. Some of the renouned economists in the country sited their views and opinions regarding this matter. Most of them said that it really downgraded the Philippine economy, yet there are things which take the positive side of this dreadful phenomenon. The global economic recession affected badly the Philippine economy. Economist Benjamin Diokno described the impact of this occurrence as “serious” adding that in the Philippines, it would result in lower exports, slower inflow of remittances from Overseas Filipino Workers, and reduced foreign direct investments (FDI). Other negative reasons also were considered. One is the shutting down of operations of some of the biggest corporations in the country including Intel Philippines and Goodyear Tire & Rubber Co. For two decades of operations, these two giant companies decided to close their operations and plant causing a large number of Filipino to lose their jobs. Also there was a loss on overseas jobs. Overseas Filipino Workers (OFWs) are the major contributors to the country’s economy. They mostly can be found in the U.S.A., U.K. and Middle East. Due to this global crisis, these OFWs have been forced to leave these countries and return to the Philippines without jobs, making their reintegration a major problem for the country and the government. Thus, it resulted to the loss of an average of $14.4 Billion (about 700 Billion Pesos) annual remittance of OFWs. Another is the effect of the U.S. Credit downgrade. The Philippine...
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