World Economy

Philippine Economy Needs to Diversify

Philippine Economy Needs to DiversifyPhilippine Economy Needs to Diversify

The Philippine economy must diversify to prevent the peso from depreciating too much whenever uncertainties arise from advanced economies, Finance Undersecretary Gil Beltran said over the weekend. Beltran, in an economic bulletin on Asian currencies, said the Philippine peso was among Asian currencies that appreciated eight years before the global financial crisis in 2008, PNA reported. Citing the Bloomberg and Asian Development Bank, data showed the currencies of 12 Asian economies appreciated by 9.3% from December 2000 to December 2007. The most appreciated currencies were the Korean won (26%), Thai baht (22.1%), Singapore dollar (16.9%), the Philippine peso (16.8%), the Indian rupee (15.7%) and the Malaysian ringgit (12.9%). But nine years after, as the international economy started to recover from the global financial crisis, Asian currencies reversed and depreciated by 14.6%. Except for Singapore dollar and the Thai baht which continued to strengthen, the same currencies that gained were among the most depreciated.  These were the Indian rupee (62.1%), Indonesian rupiah (35.4%), Malaysian dollar (27.2%), Philippine peso (21.9%) and Korean won (20.7%).  


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