Philippines will be isolated and insulated from the world economic woes

Every generation needs a revolution - an entrepreneurial revolution

Bright future for the Philippines in 2023 - Diokno. From Philstar

Will Philippines be part of the world global recession?   All ready the tremors are spreading in Europe after a bank run in Switzerland, and soon Germany, bastion of EU economic strength

But my view and view of many is that Philippines will be unaffected by these events:

1.  We will be unlike Pakistan, who is soon to be predicted to be bankrupt  (we have a more stable leadership, BIR collect taxes)   Definitely not like Sri Lanka

2.  We will not experience the hyper inflation of Venezuela (we will soon if we continue being a welfare state, engage in war, or massive unabated infra projects)

3.  We willl not experience UK difficulties  ie that of inflation and woes brought about by Brexit  (Imagine happening to what used to be the richest countries in the world . This happens not only to countries but to individuals  This happened to a distant uncle who used to own two big major subdivision, could not even pay for his funeral.  His daughters and sons impoverished him

Philippines has large domestic population which can sustain consumer demand  Our monetary system is sound, fiscal policies are in place.  Despite occasional news about  corruption and crimes, our peace and order is way above the norm.   Our Pres has a high rating

What worries us is the huge foreign borrowings .  We have $100 B bank reserves though.  

If our BPO and OFW remittances hold out in 2023, we will not suffer.   We see huge cap ex outlay of many of the Zillionaires in the country   MVP for instance continues to buy hospitals, investment in health care.  

We have bright execs and expatriates who caused boom in Indonesia, Vietnam and rest of Asean.  

Everything will be bright and all right for the Philippines

Countries that went bankrupt or on the verge of bankruptcy

Every generation needs a revolution - an entrepreneurial revolution

Pakistan on brink of bankruptcy

Sri Lanka (the home of Tamil Tigers) was the first.   Second is Pakistan    A well developed country with large population  It has ran out of gas, and currency to import its basic necessity.  

Why does a country go bankrupt?

1.  Lack of revenues;   poor ways and means and tax collection;

2.  Diminished exports

3.  Too much dependence on imported products.

Bad weather and faltering exports have not been kind to Pakistan economy   Dollar reserves stand below $5 billion, its worst.  (compare this to PHL below $100 billion)   Banks have refused to extend LC for its imports    (Can it still rattle saber with India?)

It is still in difficult negotiation with IMF for a $6B bail outs.   The top guys of the country must have rubbed the IMF guys for alleging that the  conditionalities included non nuclear stance of the country ( could be  Why do we lend to a country who could be using the funds to fuel a future of the war, that could endanger the  world)   I does not get too the usual cash assistance from KSA who as fellow Islam country is ready to lend on a phone call  The KSA head impose conditionalities like strict revenue imposition, and financia controls, just like the IMF

How can we avoid being a bankrupt country?