Philippine economy dives into recession in worst slump on record

[Jack Peterson]

1 minute ago, Gas said:

Its 500,00 per account

Gas, is this $ or Peso?

 

[Gas]

2 minutes ago, Jack Peterson said:

Gas, is this $ or Peso?

 

Pesos haha. Guauranteed by PDIC which is still in good shape. 

[Jollygoodfellow]

3 minutes ago, Jack Peterson said:

Gas, is this $ or Peso?

 

Its peso. http://www.pdic.gov.ph/faqs-4

[GeoffH]

10 minutes ago, Gas said:

Its 500,00 per account and you can have more than one account in each bank.

Thanks for the clarification.

[OnMyWay]

17 minutes ago, Gas said:

Its 500,00 per account and you can have more than one account in each bank. For example my wife and I have individual accounts, but we also have a joint account. 

No, it is p500,000 per depositor per bank.  For joint accounts, it is a bit more complicated.  They have examples here.  Click on "Illustrative Cases" on the left.

http://www.pdic.gov.ph/depositinsurance

[OnMyWay]

46 minutes ago, RBM said:

yes correct but kinda strange how the value of the peso has been holding up. Not so much against a resurgent Aussie but most other currencies.

The dollar has been on a 2 year slide.  The U.S. government is spending money it doesn't have for the stimulus programs, so that will probably continue.  However, the dollar remains a "flight to safety" currency to that props it up during uncertain times.

 

[manofthecoldland]

26 minutes ago, GeoffH said:

 

It will vary by country and will depend upon which country to a degree.  A country with a highly automated workforce or a workforce that can to a large degree work remotely and maintain productivity is going to suffer less harm than one that relys to a high degree on individual labor.

The Philippines however is going to be very badly hit because labor is so cheap here that businesses hire extra people to do a job instead of buying machinery.

 

 

Its difficult to know what's happening here right now. Especially in the provinces. Outside of the greater MNL metro and perhaps Cebu and Davao I seldom read or hear about the macro- economic status quo. But I haven't really gone digging for info.

My wife tells me that the TV reporting is mostly on a national level centered on MNL. We do have locally focuses radio, but the stories and programming is anecdotal (people here go to the local radio station and get their individual hardship problem/stories aired}. If economic data is being gathered in the individual provinces and capitals, I don't hear of it.

We all know when a National economic aid program is occurring, but since they are rare one-off disbursements, it doesn't have any long term sustaining effects.

With few or no long term social safety net programs in existence here  to pump cash into system to keep things going, I can only surmise where the money for food, water, electricity and communication loads is coming from.  Since much of the transportation and service sectors are curtailed, putting many people out of work or on limited hours ( city hall..... friend only allowed to work 2 days/week in office now) I wonder how many civil servants are doing. Police are doing OK, but a lot of paper pushers aren't getting as much. Same for teachers and the vast number of jobs tied to the educational system, directly or indirectly (vendors, trike drivers, etc.)

Farmers are still growing food, thank goodness, and bringing it to market.

One positive (if you can call it that) is that many own their own small houses and live simply w/o worrying about mortgage payments or being evicted. Ditto for car payments and credit card debt. But if you have payments to make for your single motor or are upper middle class and do have a mortgage, but are out of work, there is no government assistance to see you through the recession.

The OFWs still working and the relatives abroad who can remit money are doing all they  can to keep things going, but will it be enough?

Unlike first world countries where there are continuous reports on food banks, keeping the children from undernourishment, charitable operations, etc.,  I do not read about much of anything here.  Perhaps I am not seeking out the info and its there. I don't know. But I do know that the reporting and news coverage is lacking. Probably for political or just simple lack of information gathering systems. If you're aware of any economic stat websites reporting on the state of the PI nation, please share.

[Mike J]

1 hour ago, GeoffH said:

The Philippines however is going to be very badly hit because labor is so cheap here that businesses hire extra people to do a job instead of buying machinery.

Very true and the Philippine economy is also basically driven by consumer spending.  When consumers are out of work the spending slows dramatically.  That in turn affects business who rely on customer spending, and they have to fire/furlough staff and the problem escalates.  Putting government funds into the hands of consumers helps a little but basically only serves to kick the can down the road.  Folks here don't really want a handout, they are wanting to work. 

[peterfe]

50 minutes ago, RBM said:

but kinda strange how the value of the peso has been holding up.

I'm not an economist, but I've noticed how developing countries often try to tie their currency to one or a basket of stronger currencies. EUR has been doing well against USD recently, and if PHP is partly following EUR, that's why it's improved a bit against USD. Sometimes the developing country realises this is unsustainable and you get a sudden devaluation. Maybe it will happen here, maybe it won't. 

[scott h]

1 hour ago, GeoffH said:

A country with a highly automated workforce or a workforce that can to a large degree work remotely and maintain productivity is going to suffer less harm than one that relys to a high degree on individual labor.

That's part of the problem, but the biggest factors are that 75% of the economy is derived from Metro Manila, Cebu city, Davao and from OFW remittances. When those are shut off a free fall starts.

43 minutes ago, RBM said:

When we are out shopping or driving around in Bacolod there is absolutely no sign of hardship or poverty. Not to say its not happening, no increase in begging or any other signs which surprises me. 

I am not surprised that you do not see it. No offense but your area is not an economic power house. Most people probably make a living from selling to each other in a localized economy. (there are times I envy you guys in the provinces lol)

On Wednesday we went to the bank inside a local upscale sub division. The main roads are lined with family owned restaurants, eateries and other small businesses. A korean, japanese and spanish restaurants we frequent were all out of business with for lease signs up. Many other small shops we also shuttered. 

We have always had beggars here, but now there are several at every stop light along publics roads. 

Having said that our "localized" economy (sari saris, small eateries barbershops etc) near our home are still doing fine, but these folks just depend on small transactions with each other.