Ukraine-Russia conflict will have ‘mild’ impact on PH economy
The current war between Ukraine and Russia will only have a “mild” effect on the Philippine economy despite the inflation of crude oil and commodity price, said First Metro Investment Corporation-University of Asia and the Pacific (FMIC-UA&P) Capital Market Research.
The think-tank stated that the expected heavy election spending in the first half of the year, as well as the growing business confidence and robust earnings could offset the effects of the Eastern European conflict in the country.
The report added that the Bangko Sentral ng Pilipinas’ (BSP) “determination to keep policy rates unchanged for most of 2022” would also help the local economy remain undeterred despite the conflict.
Government spending, according to FMIC-UA&P Capital Market Research, slowed down last December in preparation for 2022 and in light of the cash-based budget system during that period.