THE government must insulate the country insulated from risks arising from the US turn to greater protectionism as well as rising tension between the US and China, a global advisory firm said.
According to Difference Group, policy makers must focus on insulating the Philippines from the effects of geopolitical shifts as well as improving the country’s capacity to deal with economic and political shocks.
Difference Group Chief Executive Officer Dan Steinbock said the Philippines must be mindful of protectionist policies which would impact remittances and offshore industries as volatility is expected to afflict economies worldwide in 2017.
“Catch-up growth is slowing down,” said Mr. Steinbock during a Philippine Institute for Development Studies (PIDS) forum held at PIDS headquarters on last week.
“It is slowing down in the Tiger economies -- it is slowing down in China. When that happens and the countries outside the region have less money to give, will the Philippines be able to grow?” he added.
The European Union’s immigration troubles and future viability, Beijing’s preparations for the next Politburo, the Indian demonetization, and US President Donald J. Trump’s moves to reverse policies enacted by the Obama administration make it hard to tell what the future holds, according to Mr. Steinbock.
In addition, the withdrawal of the US from the TPP and the country’s moves to renegotiate the North American Free Trade Act (NAFTA) has placed regional and global trade partnerships at risk.
He added that shifts in defense policies in the South China Sea and currency valuations in China will contribute to the friction between the US and Beijing, potentially placing the Philippines in a difficult situation.
According to Mr. Steinbock, the development of the manufacturing sector is expected to sustain, if not improve, the country’s growth rate amid global uncertainties.
According to Difference Group, policy makers must focus on insulating the Philippines from the effects of geopolitical shifts as well as improving the country’s capacity to deal with economic and political shocks.
Difference Group Chief Executive Officer Dan Steinbock said the Philippines must be mindful of protectionist policies which would impact remittances and offshore industries as volatility is expected to afflict economies worldwide in 2017.
“Catch-up growth is slowing down,” said Mr. Steinbock during a Philippine Institute for Development Studies (PIDS) forum held at PIDS headquarters on last week.
“It is slowing down in the Tiger economies -- it is slowing down in China. When that happens and the countries outside the region have less money to give, will the Philippines be able to grow?” he added.
The European Union’s immigration troubles and future viability, Beijing’s preparations for the next Politburo, the Indian demonetization, and US President Donald J. Trump’s moves to reverse policies enacted by the Obama administration make it hard to tell what the future holds, according to Mr. Steinbock.
In addition, the withdrawal of the US from the TPP and the country’s moves to renegotiate the North American Free Trade Act (NAFTA) has placed regional and global trade partnerships at risk.
He added that shifts in defense policies in the South China Sea and currency valuations in China will contribute to the friction between the US and Beijing, potentially placing the Philippines in a difficult situation.
According to Mr. Steinbock, the development of the manufacturing sector is expected to sustain, if not improve, the country’s growth rate amid global uncertainties.
