Middle East Tensions Drive Economic Policy Discussions in the Philippines
What happened
The Bangko Sentral ng Pilipinas reported that the Philippines’ balance of payments deficit narrowed in August, largely due to dollar inflows offsetting higher imports driven by elevated global oil prices. The country's Department of Finance is open to proposals for a direct tax on wealthy individuals if they are effectively implemented. Meanwhile, the Department of Energy announced it would not pursue the planned coal block auction this year.
From bworldonline.com
Why it matters
Economic policy discussions are underway regarding separate free trade agreements between Canada and the Philippines. A World Bank economist noted that Philippine economic growth could improve in the second half of the year if public infrastructure spending accelerates and inflation eases.
Tensions in the region are affecting market sentiment, with activity being reported from the capital city of the Philippines.
From bworldonline.com
Who's involved
- PhilippinesThe country whose economic policy is currently under review, including the central bank and finance department.
- Middle EastThe geopolitical region whose instability is impacting oil prices and market sentiment.
- World BankThe international financial institution providing economic analysis on the country's growth potential.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- PhilippinesSpeculative
The Philippines could see its economic growth targets met if infrastructure spending accelerates and inflation eases.
- Association of Southeast Asian NationsSpeculative
The Association of Southeast Asian Nations could be affected by ongoing trade negotiations regarding the Philippines.
Keep exploring
Part of
Tensions in the region are affecting market sentiment, with activity being reported from the capital city of the Philippines.Also in this story
- The Armed Forces of the Philippines is monitoring US naval asset transfers and supporting international law regarding US operations against Iran in the region.
- The Middle East conflict is driving up oil prices, which is impacting financial institutions in Manila, the capital of the Philippines.
- Geopolitical crisis causes tourist hesitation in long-haul markets, prompting ASEAN cross-marketing suggestions.
- Philippine cities' GDP contributions are reported while the Middle East crisis causes economic headwinds.
The entities involved
-
Middle East
geopolitical region encompassing Egypt and most of Western Asia, including Iran
-
Philippines
archipelagic country in Southeast Asia
Related events
- Middle East tensions are driving up global oil prices and inflation, prompting the BSP to manage the peso's foreign exchange market.
- Geopolitical instability, driven by the Iran conflict, is impacting global markets, oil prices, and prompting monetary policy discussions in Tokyo.
- Due to the ongoing Middle East conflict, Egypt and the Philippines are facing major economic shocks caused by disruptions to global oil imports.
- Geopolitical tensions in the Middle East are causing disruptions to global oil routes, leading to rising electricity costs.
- Attacks on Iran are disrupting global oil trade, while El Niño conditions rise drought risks and impending Fed rate hikes affect currency markets.