World Economic Crisis 2009
The Philippine National Administration (Malacañang is a reference to the Philippine version of the American White House) is preparing to implement an economic stimulus package in 2009. The stimulus package is called the “economic resiliency plan.” This plan will invest in infrastructure and will provide additional jobs and plans to spend 330 billion peso, most of it within the first half of 2009.
The plan includes 100,000 new jobs by the end of the month! The jobs will include street sweepers. Other jobs will be created in the building and repair
of new schools, irrigation systems and bridges. The target is for 1 million new jobs by the end of July.
President Gloria Macapagal-Arroyo said the package will also provide social protection and ensure growth in the Philippines even while most of the world is caught in recession.
Other jobs may be part of the “livelihood programs” were small and medium size businesses will receive assistance in hiring new employees.
I have seen skepticism about this plan as one Filipino economist, a professor at a Philippines University, suggested it was all talk and little action. I’ll have to take a watch and see position. I have to witness Philippine history in process before I will have a better understanding of the process here. To me, it appears the President Arroyo’s administration is ready to implement this plan.
For the expat living in the Philippines, this will have a downward pressure on the Philippine Peso and help keep the dollar’s value higher. Now this does not mean the dollars value will rise. Many factors effect that, including the downward pressures present in the US. At this time, the dollar remains strong and that may continue. I certainly hope so but I don’t understand why the dollar would continue to rise in value with 1 trillion spent in the US economic stimulus package.
For January there has been very little change in the value of the dollar vs the peso. I wonder if the Philippines Central Bank can still be expected to lower interest rates with this new indication of the government’s willingness to implement the “economic resiliency plan.”
Filed under: Living In The Philippines
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