Report: Philippines Better Off Than Other Countries in Asia

The global economic downturn will have little effect on the economy of the Philippines compared to South Korea and Thailand, according to a report by Asian Development Bank.

The Asian Development Bank reported that the Philippines is better off than Thailand and South Korea in terms of economic resiliency from global financial crises. One of the factors that keep the Philippine economy afloat is the continuing currency remittance from overseas Filipino workers which was earlier forecast to fall sharply but did not happen. Foreign exchange remittance came almost at steady pace as Filipinos abroad continue to send financial assistance to their relatives and families in the Philippines The steady flow of money into the country may be traced to the impact of two major typhoons that hit the country last month on Filipinos that have relatives abroad. These overseas Filipinos continue to send financial assistance to the typhoon affected families to help in the rebuilding of their homes. ABS-CBN News reports:

"It could also be seen as indicative of a historically underperfoming economy. After all, the Philippines' minimal exposure to global financial markets, weak export growth, and heavy dependence on remittances all contributed to shielding the economy from the immediate impacts of the crisis," the ADB said in the report.

"Unlike in Korea and Thailand, the crisis' impact on growth in the Philippines was rather small, although it has become significant since the first quarter of 2009," the ADB said. Earlier economic forecasters predicted that the Philippines and Indonesia are the only two countries in Asia that will register positive economic growth despite of the global economic downturn. In terms of jobs, the Philippines has registered positive growth in the business process outsourcing sector as a good number of BPO companies have set up their facilities in major cities in the country. In the industrial sector, though, significant decline in job creation has been noted due mainly to the impact of the global crises on Philippine economy.