Quantcast
Latest Stories

Eurozone crisis to hit Philippines in 2012

But Fitch says liquidity to cushion impact

By

Fitch Ratings said Asian countries, including the Philippines, will still feel the pinch of the eurozone debt crisis in 2012 but stressed that the impact would remain manageable given significant demand and liquidity in their domestic economies.

In one of its latest reports, Fitch said export incomes of Asian markets would remain adversely affected by the sluggish demand in Europe but expressed optimism that rising demand among Asian countries should partly compensate for it.

In September, Philippine exports fell by 27 percent to $3.87 billion from a year ago amid anemic demand from the United States and Europe, which are key export markets for goods from the Philippines and other emerging Asian economies.

The healthier economies in Asia is the reason policymakers in the Philippines are urging the country’s exporters to tap more markets within the region and reduce dependence on Western economies, like those in Europe, for sale of their goods.

The credit rating firm likewise said sufficient liquidity in the financial markets of many emerging Asian economies, such as the Philippines, gives comfort that corporate entities would be able to raise funds when needed.

Moreover, Fitch said that most large Asian companies, led by publicly listed ones, have registered favorable income performance over the past year and, as such, have less need to tap the international financial market for funds.

“The second way the eurozone crisis could affect Asian corporate [entities] is access to funding. However, most Asian corporate [entities] are in a stronger position now than they were going into the 2008 downturn,” Fitch said in the report titled “Asian Corporates’ Exposure to Eurozone Is Manageable.”

In the case of the Philippines, the economy grew by 4 percent in the first semester from a year ago. This was a slowdown from the over 8 percent registered in the same period last year but is better than growth rates of industrialized countries.

The slowdown was blamed on lower-than-programmed public spending and anemic demand from industrialized markets that pulled down the country’s export earnings.

Growth of the country is aided by domestic demand, which in turn is partly fueled by remittances. Sustained growth in domestic demand keeps the positive outlook of corporate entities in the country, economists said.

Most forecasts say the Philippines is likely to maintain a growth in the 4-percent territory in 2012.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Asia , economy , Eurozone crisis , Financial crisis , forecasts , Philippines



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Obama, family cause a small stir at Easter service
  • Estrada: Gigi Reyes won’t testify vs JPE
  • Ancient enigmatic carvings in danger of disappearing
  • Tagle: Hope comes with warning on Easter
  • New plant to boost supply of clean energy
  • Sports

  • Goodbye MGM, Las Vegas for Pacquiao?
  • Rain or Shine drops Ginebra in big hole
  • Ateneo whips CSB; Davao debuts with win over FEU
  • PH pug Hipolito Banal decisions Colombian in Aiba
  • Former Pacquiao sparmate Porter keeps IBF title
  • Lifestyle

  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Korean animation comes of age
  • Entertainment

  • Easter musings
  • Solenn in shorts
  • Unmerry mix of attention-calling moves on ‘Mini-Me’ TV tilts
  • Persistence pays off for The 1975
  • Special section in LA fest for Filipino films
  • Business

  • BDO seen keen on bidding for Cocobank
  • Bataan freeport investment pledges up 1,302%
  • Golden Week
  • Bourse to woo Cebu stock mart investors
  • Supper power
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • Search for Etihad passengers launched
  • Japan presents $57-B ‘dream plan’ to solve Metro congestion
  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Marketplace