In the July 2009 edition of Market Call July 2009, First Metro indicated that “green shoots” are becoming more visible in the Philippine economy. The Market Call is a monthly publication, produced jointly by First Metro Investment Corporation and the University of Asia and the Pacific.
Fiscal spending, the publication says, continues to grow at record levels while keeping the deficit according to program; the inflation rate, at below 2%, has dropped to a 22-year low; exports are moving up on a monthly basis; and OFW remittances have remained positive. The bond and, more especially, stock markets remained robust.
A shift in risk appreciation in the financial markets all over the world reflects the view that the worst may be over, and the recovery whether weak or strong is already ongoing. But more optimistic sentiment alone cannot bring about a good recovery. And so we continue to be cautiously optimistic that the Philippines will post positive growth, despite the contrary opinion of the World Bank.
Click here to view a copy of The Market Call (July 2009).