According to the New York-based think tank, Global Source, the Philippines would be among countries “more vulnerable to the Japanese fallout, given its trade and economic relations with that nation – noting that Japan was the Philippine’s single-biggest export destination and source of imports as well as biggest source of foreign direct investment. In addition, nearly a quarter of a million Filipinos work in Japan, accounting for about 5 per cent of total remittances.
It is not surprising then that there is a lot of concern over a possible decline in trade, slowdown in production of semi-conductors and electronics which are the Philippines’s top exports to Japan.
However, the wave of uncertainties that have reached our country is not expected to derail the Philippines’ economic momentum.
The tsunami may have brought a wave of worries in Philippine shores but this will likely not be enough to douse the country’s economic prospects.
Noting that the greatest damage to Japan did not occur in Japan’s industrial heartland, Global Source said that rebound is possible after an initial slowdown in production where energy supply disruptions are temporary given high spare capacity.
(Adapted from Philippine Daily Inquirer, page B4, March 21, 2011)