MANILA, Philippines — President Gloria Macaapgal-Arroyo said she had ordered her economic officials Tuesday to prepare a contingency plan to cushion the impact of an economic recession in the developed world.

Arroyo said she feared developed countries would slide into recession and cloud the Philippines' own economic prospects.

Arroyo said she had ordered planners to "prepare a contingency plan to cushion the impact of an economic recession in the developed economies on ordinary Filipinos."

These include the eight million Filipinos who work abroad and who may be affected by any downturn in developed nations, she said in a speech to government officials and business leaders here.

"I direct the Department of Foreign Affairs, the Department of Labor, and the Commission on Filipinos Overseas, to draw up a bigger plan for overseas Filipinos," she said.

"As we face the most significant global economic and financial crisis in a generation, the poor feel it most," Arroyo said.

Economic planners should "manage inflationary pressures and provide a safety net to those hit hardest by these global developments."

Officials and analysts have warned that the country's exports will be hit hard by an economic slump in developed nations and that numerous Filipinos overseas may be hurt if the economies in their host countries slow down.

In previous months, Arroyo expanded government benefits to help those who were affected by the rapid rise in the prices of oil and rice.

She said the country had a humanitarian responsibility to protect Filipinos, at home and abroad.

Remittances from Filipinos working overseas are major sources of the country's foreign exchange and have been a major pillar in holding up the economy. With a report by Joel Guinto, INQUIRER.net