Following years of sustained high growth, the Philippine economy

slowed down conspicuously in 2008 and decelerated further in 2009 as a

result of a series of major external shocks specifically the food and fuel

price crises, the global financial meltdown, and the global recession. The

food and fuel price crises brought domestic inflation to a decade-high thus

choking real household income. Then the global financial turmoil led to a

collapse in domestic asset prices and a disruption of credit markets ---

depressing corporate and financial sector earnings as well as investments.

The subsequent global recession is impinging on the real sector as exports

and remittances fall and job cuts rise. Many have referred to the current

global economic environment as "a perfect storm".  more...