Philippine Economy Isn’t Vulnerable To China Slowdown – Expert
Compared to our neighboring nations in the region such as Singapore, Hong Kong, Taiwan, and South Korea, regional credit officer at Fitch Ratings’ Credit Policy Group, Dan Martin, said that the Philippines is not particularly vulnerable to the fallout from the slowing Chinese economy.
The Philippine economy doesn’t come out as a model that is particularly vulnerable to China’s slowdown. And on the market side, the Philippine economy is not reliant on capital inflows and the country don’t do as much lending and foreign currency, according to the Fitch Rating officer.
Due to the debt exposure to China of Singapore, Hong Kong, Taiwan and South Korea, they might see “ripple effects” follow ing this. Fitch Ratings credit officer for the region, explains developed economies show vulnerability in three channels: Direct lending to China, trade movement and market capital flows.
Sri Lanka and Indonesia also might be affected due to their foreign currency-denominated borrowings.