THE Philippine economy is “strong” and can withstand the headwinds from a potential Greek debt default and eurozone exit, Malacañang said on Monday.
Presidential Communications Secretary Herminio Coloma Jr. gave the assurances following a dominant win of the Greek government’s “no” vote in a referendum on financial bailout reform proposals of its creditors.
“The Philippine economy is strong, resilient, and able to deal with possible fallout from the results of the referendum held in Greece yesterday,” Coloma said in a statement.
“Investor confidence is at an all-time high and given the wide fiscal space created by high growth rates and sound economic management during the past five years, the government can deploy ample resources for dealing with possible deleterious effects,” he added.
The Agence France-Presse reported that the euro plummeted 1.6 percent to $1.0963 in the wake of the referendum.
Finance Secretary Cesar Purisima, in a separate statement, said the Philippines is in a “much stronger position” now to face the volatility from the Greek fallout.
“The Greek No Vote highlights the structural weakness of a currency union without fiscal and political union and makes for perilous choices for both sides. This means heightened market volatility. Everyone will be buffeted by this including the Philippines,” Purisima said.
“But Philippines is now in a stronger position to deal with this given its strong external and fiscal situation as well as much lower and better liability structure,” he added.
Meanwhile, Labor Secretary Rosalinda Baldoz said the government does not expect a mass repatriation of Filipino workers in Greece.
“Most overseas Filipino workers are highly skilled workers and they continue to be in demand. For those affected, they prefer to be trained as caregivers for third country deployment like Canada. Others are married to Greek nationals,” Baldoz said in a statement.