Philippines - A broader analysis of the country - July 2012

Executive summary:

• President Aquino’s strong mandate bodes well for political stability and making progress in addressing poverty and corruption issues. Security concerns on the island of Mindanao persist.
• Philippine electronics exports are affected by a gloomier global economic climate. Economic and geographical diversification and resilient remittances fuelling household consumption are likely to mitigate the impact on the current account from the eurozone crisis and China’s soft landing.
• A stimulating policy mix combined with investments in social programmes and infrastructure aim to support the economy.
• Despite public debt having nearly halved since 2003, Manila needs further fiscal consolidation.
• Capital repatriation by European banks is the main downside risk for a more solid domestic banking sector.
• Record foreign exchange reserves provide a valuable cushion against external shocks.

DETAILED ANALYSIS OF PHILIPPINES PREPARED BY ONDD PLEASE FIND   >> HERE <<