Four years of crisis in the Philippines: What’s happening next?
After years of economic hardship, the Philippines is on the brink of a fourth financial crisis in 15 years.
“The Philippines is facing the worst economic crisis since the 1990s,” the International Monetary Fund’s latest World Economic Outlook (WEP) states.
“The country’s public finances are in dire straits.
The Philippines faces a growing number of serious economic and fiscal challenges.”
“Poverty, social insecurity, rising income inequality and economic stagnation have been the major issues of concern since the end of the decade,” it adds.
In the wake of the economic downturn, the government has introduced measures to boost the economy, including the introduction of a tax on the country’s high-cost goods such as luxury goods, cars and luxury goods.
The country is expected to record a net loss of $1.3 trillion (£872bn) in 2014-15, according to IMF projections.
Yet the IMF warned that the country would still struggle to pay back debts, which would cause further hardship.
According to the latest report from the World Bank, the country is in a financial position that it will struggle to repay over the next five years.
“Despite the current economic challenges, the recovery from the crisis has been slow and fragile,” the report said.
What is happening now?
The World Bank said that while the country has managed to bring back some private sector jobs, the economy remains severely reliant on the government.
“The economic recovery has not been rapid enough to ensure a solid return to full employment, which is essential to the recovery of the Philippine economy,” it said.
In February, President Rodrigo Duterte announced plans to ease restrictions on the flow of capital to the economy.
But critics have questioned the government’s intentions, accusing the government of a series of scandals.
President Rodrigo Duterte has announced that he will lift the capital controls imposed by his predecessor, Benigno Aquino III, in March 2014, and allow the foreign investment to continue.
However, the World Trade Organization has warned the Philippines to “fully implement the measures” to reduce its trade deficit with China, which has overtaken the Philippines as the second largest economy in the world in the last 10 years.
What can the country do?
There are two ways to help the Philippines, both of which have the backing of the international community, the International Federation of Red Cross and Red Crescent Societies (IFRC) said.
The first way is by encouraging the private sector to return to normal and grow the economy through investment.
Governments should encourage the private sectors to invest in the country, especially those in the agriculture sector, and encourage them to invest locally.
To that end, governments should encourage businesses to increase their capacity to employ more people, particularly women.
Second, by supporting the government to take measures to increase the countrys infrastructure, which could include improving road and rail networks and creating more job opportunities.
These measures could include boosting the national debt and spending on health, education and public works, according the report.
Why are the Philippines facing such a crisis?
Despite the problems facing the Philippines over the last five years, there has been a growing belief that the economy is going to recover.
As one of the wealthiest countries in the Americas, the GDP per capita is almost $25,000.
Its economic recovery could see the Philippines surpass China as the number one economy in Asia by the year 2030.
This could lead to a sharp rise in trade and investment flows, which will allow the country to recover its position as the world’s second-biggest economy.
“This country has shown great resilience and resilience, with no major shocks to its growth trajectory and an improving global outlook,” said the IFRC’s head of strategy, David Moya.
How long can the Philippines keep going?
As the Philippines continues to struggle to return its economy to normal, the international financial system is expected not to take its eye off the ball.
Its central bank governor has also warned that if the country does not achieve growth and full employment it will be forced to devalue its currency and devalue other foreign currencies to ensure its debt repayment.