Impact of the Economic Global Crisis: Current Situation and Prospects in the Philippines

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Impact of the Economic Global Crisis:
Current Situation and Prospects in the Philippines

Asia in general was not affected by the current global financial crisis (1). The source of the crisis did not come from the developing countries as seen in the 1990s during the Asian crisis. In 2008 - 2009, the developed world initiated the global financial crisis with the sub prime lending implosion; thus, affected the rest of the world. The Philippines in particular did not fall into a recession since the banks were not exposed to toxic assets as seen in the European banks and other developed world. Despite the disaster in the world trade and credit markets affecting trade in the Philippines, the large volume of remittances from overseas
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The developing countries of East Asia including the Philippines confronts new external standards with slower growth in developed countries, tighter monetary conditions, increasing concerns about developed countries’ debt. Consequently, this leads to an extremely difficult situation for growth. In the near term, careful management of the fiscal stimulus measures is necessary; while, the country restores their structural reform program in the future.
The aim for the Philippines should be successful investing in physical and human resources to further growth in earnings of manufacturing, as well as exports (4). This also applies to other middle-income countries including Vietnam, Indonesia, Malaysia, and Thailand. Cultivating innovative programs and promoting the establishment of businesses are vital. Education is key to the success. With the extra resources, enhancement of infrastructure and development of the education system are likely. Indeed, improvement of the Philippines' global competitiveness and investment demand would allow its development and full potential. According to the World Bank, addressing the enormous cost of doing business due to poor market competitiveness and inadequate infrastructure, would inevitably lead to access to resources and job creation.
The

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