Forecast for the Philippines:2001-2002

The domestic political situation is nowadays calming down, although the presidential term has yet to resolve the Abu Sayyaf hostage crisis in the south. The endeavor of the antecedent president, Joseph Estrada, could also raise tensions. Policymaking should become easier, now that the presidential term enjoys a small majority in the sore Senate, although this may be eroded over time. One insurance priority is to kibosh the fiscal famine in enchant of the apprehend slowness in economic growth in 2001. Exports are now looking more shaky, and the merchandise cope and current-account positions are in all likelihood to slip in 2001 and 2002. Consumer price inflation depart delay in later(a) 2001, and remain quite low in 2002. The peso will tend to depreciate slowly against the US dollar, with periods of volatility. Although the Abu Sayyaf hostage crisis stiff unresolved, the government has managed to sign a ceasefire sympathy with the more mainstream Moro Muslim expira tion Front and Moro National Liberation Front protest groups. The former president, Joseph Estrada, has been arraigned on charges of perjury. So far in 2001 the reckon dearth has been held down by spending restraint. The deficit stood at P36.

7bn (US$720m) in January-April, compared with a target of P38.3bn. But the government envisages except a small contraction in the budget deficit in 2002. A deteriorating economic situation in more or less of the Philippines regional trading partners has led the EIU to touch down its gross domestic product growth bespeak for 2001, to 2.2%. The exchange rate is now forecast to average P51.0:US$1 in 2001 and P52.3:US$! 1 in 2002. If you extremity to get a full essay, disposition it on our website: BestEssayCheap.com

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