Philippine economy dives into recession in worst slump on record

[BrettGC]

8 minutes ago, hk blues said:

I don't believe the peso is holding up particularly well or badly at the moment.  Many posters are using the decline in the USD to peso as a general indication of the peso's performance - I think it's simply a reflection of a weakening of the USD for obvious reasons.  The GBP has risen about 5% against the peso in the last couple of weeks despite the ongoing Brexit woes, the Covid-19 impact etc - I would put this down to a weakening of the peso rather than a strengthening of the GBP. 

Aussie dollar has gone from about 32 to 35ish -  seems small but 10% is nothing to be sneezed at -  in about 4 weeks and getting stronger against the greenback at the same time.  It may be enough to counter inflation so the next CPI figures out of PI are going to interesting.  If PI resorts to quantitative easing, that's when it's going to be a lottery...

 

[OnMyWay]

Jollibee will be closing 255 stores.

https://sea.mashable.com/culture/11835/philippine-fast-food-giant-jollibee-loses-us2-billion-and-will-be-closing-255-stores?fbclid=IwAR01BOuXSArfYbkUcMLOV2OTtk75ASYjfSJjEZJRkkg9HwNJuARmEUpzrJk

[hk blues]

6 minutes ago, OnMyWay said:

Jollibee will be closing 255 stores.

https://sea.mashable.com/culture/11835/philippine-fast-food-giant-jollibee-loses-us2-billion-and-will-be-closing-255-stores?fbclid=IwAR01BOuXSArfYbkUcMLOV2OTtk75ASYjfSJjEZJRkkg9HwNJuARmEUpzrJk

I guess many large companies will follow suit and use this as an opportunity to close underperforming businesses - and the stock market loves to see a cost-cutting initiative.  

[RBM]

17 hours ago, OnMyWay said:

Jollibee will be closing 255 stores.

https://sea.mashable.com/culture/11835/philippine-fast-food-giant-jollibee-loses-us2-billion-and-will-be-closing-255-stores?fbclid=IwAR01BOuXSArfYbkUcMLOV2OTtk75ASYjfSJjEZJRkkg9HwNJuARmEUpzrJk

This shocked me, must be serious for fast food favourites to close. Would of expected such enterprises to be semi immune to the down turn. For sure they are as always busy here.

This points out to me people must be struggling much more than I realized, guess more so in major cities.

lets hope this does not, will not, reflect in a crime increase, have read nothing of this as yet but could well be for the future. Mr Duterte has increasingly stated we have no more money......Worrying times.

[hk blues]

1 hour ago, RBM said:

For sure they are as always busy here.

I'm not sure where you are located, but here in Iloilo the fast food stores are definitely much, much quieter than before. We go shopping on Saturdays and previously they were mobbed - now, they are extremely quiet and almost depressing. Still have to wait an eternity to get my food though!

[Jollygoodfellow]

5 hours ago, hk blues said:

I'm not sure where you are located, but here in Iloilo the fast food stores are definitely much, much quieter than before. We go shopping on Saturdays and previously they were mobbed - now, they are extremely quiet and almost depressing. Still have to wait an eternity to get my food though!

Everything is quiet here even with dine in allowed at 50% under certain conditions. Most are just staying with takeout and probably because by the 15th who knows what changes, go backwards or forward so risky to open fully.

[hk blues]

55 minutes ago, Jollygoodfellow said:

Everything is quiet here even with dine in allowed at 50% under certain conditions. Most are just staying with takeout and probably because by the 15th who knows what changes, go backwards or forward so risky to open fully.

I was in Robinson Mall in Iloilo just this afternoon and, although we have no lockdown in place, it was deserted. I'd estimate that 75% of restaurants had zero customers and the big guys like Jollibee, McDonalds and Inasal were at less than 15% capacity. Very worrying times. 

[Jollygoodfellow]

2 hours ago, hk blues said:

I was in Robinson Mall in Iloilo just this afternoon and, although we have no lockdown in place, it was deserted. I'd estimate that 75% of restaurants had zero customers and the big guys like Jollibee, McDonalds and Inasal were at less than 15% capacity. Very worrying times. 

I wonder if its because no money to spend or people are social distancing themselves like advised.

Anyway I see from news your back into curfew and supposedly liquor ban?  Anything else? 

[Joey G]

On 8/6/2020 at 10:06 PM, BrettGC said:

I just wonder when the OFW money is going to dry up.  Anecdotally hordes have returned home to PI since this all started and, as someone previously stated, in normal times their remittances are a huge part of the economy.

The flow-on effect of course is that their employers are either going without the cheap labour, in whatever sector, or hiring locally at higher rates.  I know in Australia, there's a desperate shortage of agricultural workers that is normally filled with overseas labour by international employment agencies, some reputable, others not so much, but that's another discussion.  

OFW's and other overseas workers contribute to economies all over the world by both being cheaper labour and/or spending in the country they work in, obviously some countries more than others. 

OFW's....  It has run out for most I know that came back... and the worst part is... going back isn't as easy as it was (not that was ever really "easy"). 

[hk blues]

15 hours ago, Jollygoodfellow said:

I wonder if its because no money to spend or people are social distancing themselves like advised.

Anyway I see from news your back into curfew and supposedly liquor ban?  Anything else? 

I think it's a bit of both - lack of money and lack of enthusiasm to spend as there is nowhere to go with the stuff you buy!

The liquor ban is only in the city as far as we can gather - the suburbs/rural areas are still OK.  The complete reverse of the previous situation.  With the ban, the usual situation is people can buy alcohol if they know where to go but the price is about 50% higher.  I always keep 2 cases in stock.  

No other big changes - still awaiting confirmation of the face shields rule.