Asia remains bright spot in faltering global economy-A A +A
Monday, March 18, 2013
WHILE the lingering effects of the euro debt crisis continue to hurt Asia’s trade exports, an official from the Bangko Sentral ng Pilipinas (BSP) said Asia remains in a “brighter spot” and will continue to fuel growth in the global economy.
Ma.Cyd Tuano-Amador, assistant governor, Monetary Policy Sub-sector of BSP said emerging market economies in Asia are “not immune” to the euro-debt crisis but “can be insulated.”
She said Asia’s strong foothold stemmed from its homegrown resiliency that was built over the years. Amador said Asian countries have built up a “buffer” to ride out economic challenges, learning from experiences in the 1997 Asian financial crisis.
Asia’s sources of resilience include its strong macroeconomic fundamentals, strong domestic demand, comfortable external payments position, expanding intra-Asian trade, and sound banking system.
“Philippines, for instance, has able to sustain its economic performance due to its strong macro-economic fundamentals,” Amador said, who is one of the speakers during the plenary session of the recently concluded three-day CACCI conference at the Radisson Blu Hotel Cebu.
While emerging economies will have a difficulty to export its way out of Euro’s debt crisis, Amador pointed out that growth in the global economy is expected to pick up slightly this year due to the improvement in housing sector and job market and the overall upbeat confidence of the market.
“Asia is expected to remain strong underpinned by strong domestic demand, ample credit, strong labor markets, and firm consumer and business confidence,” she said.
The eurozone is one of the biggest markets of emerging economies like the Philippines.
It is also host to a significant number of migrant Asian workers, including Filipinos.
With the right fiscal policies in place, Amador is confident Asia, particularly the Philippines, will sustain its economic growth.
The country, she added, has also started to boost its capital formation in forms of durable investments that would help facilitate growth in the economy in the medium and long terms.
But alongside the strong growth of the Philippine economy is the strengthening of its currency, which also poses a challenge.
Published in the Sun.Star Cebu newspaper on March 19, 2013.