Cebu, Philippines (16 October) -- The country's economy is likely to withstand situations and event that would stressed out its growing economic foundations that the Arroyo administration and her economic team has tried their best to protect.
Wick Veloso, treasurer and chief of the global market operations of the Hongkong & Shanghai Banking Corp (HSBC) believes that RP's economy will continue to be strong but it has to watch the economic landscape of the U.S. and other geo-political factors that might largely affect the growth.
Veloso added that Arroyo's economic team has preserved the country's good economic reforms which is Arroyo's economic legacy that has created s tremendous impression of foreign investors that continue to pour their capital in the BPO, mining investments and real estate sectors and the growing remittances of the OFWs that has been considered as one of the country's economic drivers.
With these, Veloso added the peso is expected to be even stronger and will climb to nearly P40-$1 in the next few years.
Diwa Gubigundo, deputy governor recently said that the country is gaining more advantages than disadvantages from the peso's continuing appreciation against the dollar. He further said that a stronger peso augurs well for lower inflation, better debt service and more resources for public infrastructure and social projects.
Gunigundo commented that the peso's appreciation, although it has lowered the earnings of local exporters, has more advantages because the export business is not dependent on pricing alone. Exporters can enhance their competitiveness and increase their sales volume.The BSP deputy governor further noted that the rising OFW remittances, Philippine exports and influx of foreign capital to the country have contributed much to the rising peso. (PIA-Cebu/MBCN)