Philippines will only feel the full impact of the global economic crisis next year, since there’s a time lag in terms of the impact of a global economic slowdown. “This can be in the form of effects in the real economy such as slowdown in the export sector, slowdown in business and economic activity,” Finance Secretary Margarito Teves said.
Teves said Asian countries historically don’t plunge into a recession, unlike the United States. A recession occurs when an economy suffers two consecutive quarters of negative growth.
Asked how the government would address this, Teves said: “A combination of accelerated implementation of infrastructure programs, making sure this time this infrastructure spending is done in a larger way during the first semester of the year to take advantage of the good weather, continued investment in food, agriculture.”