little worries about the philippine economy

With all the talk about a Global slowdown, economists largely agree that the Philippines will be better off than the neighboring countries.

I wonder why there's so little worry about the Philippine economy. Here some things that keep me from worrying too much about our economy:

1. Our Exports are no longer beholden to the U.S. economy. We have buyers in many other parts of the world.

2. Large foreign denominated income keeps growing. OCWs and BPOs are the champions here. Note that they do not earn only in dollars. OCWs are all over the world and a good number of them receive Euros and australian dollars. The same is true for BPO. We import jobs from all over the world.

3. The BSP is doing a fine job. While the BSP reported losses, we must remember that the BSP is not there to earn lots of income. It serves the primary purpose of keeping the peso stable. Prior BSP officials can only agree that the incumbents have done a good job.

4. The world's appetite for minerals and agricultural products are rising. Whether we want it or not, the Philippine's has major strategic advantages in these areas.

5. The world is sick of being oil dependent and solutions are coming soon. The most obvious is the rising sales of small cars. While the nano of tata probably won't be sold here anytime soon. China and korea have shared the blessing of the picanto for kia, the getz from hyundai and the qq from chery. Tiny engines help Pinoys deal with rising oil prices. Chery's qq has a surprisingly small engine. Its displacement is at a jaw dropping and almost funny level of .8 liters.

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